Based on very simple technical analysis on the weekly chart, it's looking like TQQQ is about to ricochet off the top and likely end up crashing due to decreased trading volumes in the NASDAQ. Without the volume to artificially prop up the stock prices underlying the TQQQ ETF, I'm predicting a stunning downside movement. History shows us that when this topline...
The situation with China and now Mexico tariffs will be drawn out, there may be two rate cuts but the Fed will wait for the data to support it, meantime we will see more volatility.
I may look to flip the trade if there is very clear resistance at the cloud and .786 fib.
Our researchers believe the NQ and YM chart illustrates a very different dynamic which is currently at play in the US Stock Markets. The NQ, the Technology heavy NASDAQ futures, appears to have stalled near the 75% Fibonacci price retracement level whereas the YM, the Blue Chip heavy DOW futures, has already rallied past this level and is setting up a “double...
SPY Stock market showing signs of reversing but still needs several more days to form top. But who will lead the decline and next rally? DOW or NASDAQ?
Here is an article talking about it.
SP:SPX AMEX:SPXS AMEX:SPXU NASDAQ:QQQ SQQQ AMEX:DIA SDOW UDOW
With the government coming back from the longest shutdown in history. We could still be expecting blowbacks from the affected sectors and companies. So what better pattern to complete this mash-up than a head and shoulders.
Please Like if you agree. The longest government shutdown in history ended with 35 days. But the blowback effect of all the reports and cutback are still ahead of us.. This is why I see head and shoulders in our pattern traders forecast.
I suspect that the SPY can show signs of a possible Head and Shoulders. For those that also see this possible market reaction. Its best to have this in mind.
As described in my previous note on the S&P 500, there have been two major market corrections since the end of the Great Recession. They were periods of high volatility and a lot of repricing of stocks for 140 days or more.
In both cases they started with:
1. A complete reset of the daily RSI ( Relative Strength Index below 20)
2. The S&P 500 holds below the...
Directional Bias: Long
Price Target: 175
Good Entry: 153-155 area - trade thesis invalidated on a daily close below 151.5
Risk/Reward: $3.5 dollar max loss/20 dollar reward
Well - volatility has been crazy but the bulls are coming back as strong as the bears were last week.
The 7320 target reached and has even been exceeded.
Here is a price action scenario I can see occuring and would be looking for the following trade setup:
Directional Bias: Long
Price Target: 7420
Good Entry: 7200-7220
Risk/Reward: 30 points max risk (below...
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