I'm surprised that no one on Trading View posted this chart today.
The NDTH is a chart of the percentage of Nasdaq 100 stocks that are above their 200-day moving average. It dropped to 6.86 today. This means about 94% of Nasdaq 100 stocks were below their 200-day moving average. The last time this level was reached was in March 2020 right at the bottom of the COVID market crash. The NDTH has never dropped below 15 except during significant bottoms on the Nasdaq.
While anything is possible, it's highly likely that we are seeing peak fear, peak inflation, and market capitulation currently. This extreme level makes for a very good risk-to-reward setup for going long. My strategy is to place a 2x daily ATR stop loss on QQQ or TQQQ. It's likely if we drop below this level then we're in for a deep recession. Whereas if this low holds, then this is a major bottom for tech.
The NDTH is a chart of the percentage of Nasdaq 100 stocks that are above their 200-day moving average. It dropped to 6.86 today. This means about 94% of Nasdaq 100 stocks were below their 200-day moving average. The last time this level was reached was in March 2020 right at the bottom of the COVID market crash. The NDTH has never dropped below 15 except during significant bottoms on the Nasdaq.
While anything is possible, it's highly likely that we are seeing peak fear, peak inflation, and market capitulation currently. This extreme level makes for a very good risk-to-reward setup for going long. My strategy is to place a 2x daily ATR stop loss on QQQ or TQQQ. It's likely if we drop below this level then we're in for a deep recession. Whereas if this low holds, then this is a major bottom for tech.
Trade closed: target reached
Took profit on my long tech position in early August 2022. This trade idea was an intermediate-term idea.For an updated perspective on tech, you can view this post:
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To support my work:
patreon.com/SpyMasterTrades
To subscribe to my YouTube channel:
youtube.com/@SpyMasterTrades
To follow me on X:
twitter.com/SpyMasterTrades
To tip me (BTC wallet):
bc1qvh48429042mdwvdthwlufx072g3ftffcts2q03
patreon.com/SpyMasterTrades
To subscribe to my YouTube channel:
youtube.com/@SpyMasterTrades
To follow me on X:
twitter.com/SpyMasterTrades
To tip me (BTC wallet):
bc1qvh48429042mdwvdthwlufx072g3ftffcts2q03
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.