This looks scary. SQQQ (short of QQQ) is forming a bullish divergence within a wedge. Well, I think Nasdaq is due of a big correction though. I'm packing my things ups before the tsunami runs over me.
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Check this post:
Trade active
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I'm holding SQQQ for weeks in case the market crashes. Is like an insurance, I'm not selling it, actually I may add. I want to see some bears action first.
what if QQQ goes to $ 400 that would be crazy ????
ChazzyFreshh
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What's your thesis for a tsunami breakout based on other than a wedge and RSI divergence? The indexes could use some cooling off, but I personally wouldn't call it a tsunami that's on the short term horizon. For starters, several things still look bullish and dxy is still extremely weak which makes me weary about your analysis. I do see a tsunami coming much further out..
ArturoL
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@ChazzyFreshh, Check my other posts, QQQ just hit a mayor resistance, the same as SP500 and low caps is forming a HS. This was just a bull rally, we still in a bear market.
ChazzyFreshh
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@ArturoL, Wish I was as certain as you in the larger picture... definitely coming into resistance though, however QQQs about to have a weekly close above it's only major resistance until the 360-370 range... and same with SPY on the weekly, looking like it definitely wants to hit 430 before attempting to correct. A lot can happen in two days though and we have the debt ceiling issue as well that will certainly invite manipulation/speculation one way or another.
ArturoL
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@ChazzyFreshh, It does look very strong, but every time we've had this strong moves the upside the stock markets pulls back very fast. There is a lot of manipulation and algorithms, this isn't a transparent market it can shift without warning. We'll see tomorrow what it does when Powell speaks. But I'm not opening any new long position for now, but energy.
elenaec
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@ArturoL, but energy did you mean NG/Boil ??? thank you
ArturoL
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@elenaec, Check my post (scroll all the way down), I have a big position here
@ArturoL, I agree about the violent pullbacks after strong rallies, I will point out there is Q resistance at 350 too. DXY at resistance but holding macro 50% level. I am trying to short NVIDIA if I can get some confirmation. Need a nice hedge for my tech holdings lol. I am in the camp this correction will be short lived. At least for commodities, gold and silver are about to present some great buying opportunities in my opinion. Energy does look inviting.