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SQQQ

Are you bullish on Short ETFs? $SQQQ $SPXUWhat do you see when looking aty these charts? I see higher highs and higher lows. The NASDAQ:SQQQ broke a short-term trendline to the upside and then, the AMEX:SPXU followed. Now the next test is the last week's high, which it seems that it will break today. If it does, the next resistance is at the June highs. Thats +34% for SQQQ and +25% for SPXU, it could be a really good swing trade. You could also say that both ETFs are making a head & shoulders but until the neckline is broken is not a head & shoulders.
AMEX:SPXU
by dpuleo19
1
Updated Analysis on Tech (QQQ)This is the daily chart of SQQQ. SQQQ is the ETF that tracks the Nasdaq 100 ETF ( QQQ ) inversely. When tech stocks fall, SQQQ rises. Traders, therefore, use SQQQ to short tech stocks, or to hedge against a collapse in tech prices. There are several bearish signals appearing in the daily chart of SQQQ, which hint that we may soon see bullish movement for QQQ and the Nasdaq. First, there is decreasing volume in the daily chart of SQQQ, which shows that fewer and fewer market participants are opening new short positions against the Nasdaq. This is occurring even while the price of SQQQ continues to move up. This divergence is bearish and is usually the earliest sign that a reversal is coming. Second, there are major gaps up appearing on the daily chart. Gaps to the upside on SQQQ have historically never failed to close back to the downside. Therefore these gaps should be viewed skeptically, as they fail to validate upward price action. Third, the upper limit of the Fibonacci Bollinger Band continues to act as strong resistance, continuing the more than a decade-long trend whereby price cannot sustain itself above this line on any sustained basis. This line has mathematical importance, it reflects a level of price deviation where, after being reached, price begins to show a mean-reverting tendency back to the downside. In this case, SQQQ's mean reversion would be bullish for QQQ and the Nasdaq. There are many other indications that are showing that SQQQ is too overextending, including the extremely over-heated Stochastic Heat Map. The NDTH is also indicating that a very significant bottom is forming for tech and the Nasdaq. In fact, the Nasdaq is so oversold that the current levels have not been seen this the market crash of 2008-2009. Therefore, SQQQ has effectively priced in a significant recession. While a significant recession might indeed be on the horizon, if a significant recession does not ensue, then we can be fairly certain that a major short squeeze for SQQQ will occur: However, the strongest bullish argument for SQQQ (bearish argument for the Nasdaq) is that weekly price broke through the Ichimoku Cloud for the first time ever. The only plus here is that the weekly candle is a spinning top and most oscillators are trending back down. Regardless, with SQQQ being this historically overextended, it can represent a rare opportunity to buy QQQ and tech stocks before a massive short squeeze occurs. While anything can happen, and one should always use stop losses, this chart does not convince me that SQQQ is about to breakout much higher to the upside. Therefore, I remain a holder of tech and growth stocks for the intermediate-term. Not financial advice. Anything can happen and trends can end.
NASDAQ:SQQQ
by SpyMasterTrades
4
Here's Why You Should Think Twice Before Selling TechThis is a 2-month chart of the Nasdaq US Composite Index (IXIC). At the bottom is the Stochastic RSI which oscillates up and down depending on how overbought or oversold the market is. There have only been a few times since its inception a half-century ago, that the Nasdaq Composite Index had a 2-month chart this overextended to the downside. The K value of the Stochastic RSI has actually reached zero. If the 2-month chart closes at that level, it will mark a super rare occurrence that has only occurred twice in the history of the Nasdaq (the last time being at the bottom of the Great Recession). I calculated the one-year returns for the Nasdaq one year (from low to high) after the K value of the Stoch RSI on the 2-month time frame dropped below the oversold line (to or nearly to 10). For the case of the Dotcom bust and the Great Recession, I selected the point when the Stoch RSI's K value first reached 0, which is its current reading and which is thus fairly comparable. Even during these significant economic downturns, buying at this oversold level produced decent returns one year out. Obviously, past price action does not guarantee future price action, but history does tend to repeat itself. Odds are that ten years from now you'll probably be wishing you had bought into this oversold level. Here are the one-year returns from the market bottom during the 2M period (when the Stoch RSI K value met the criteria listed above) to the market top of the 2M period one year later: +95.78% +36.47% +31.24% +78.89% +20.17% +69.50% +27.14% +52.36% Mean: +51.44% Not financial advice. As always anything can happen.
TVC:IXIC
by SpyMasterTrades
AAPD AAPL LONG (inverse) SETUPAAPL is pulling back today, and so setting up AAPD for a swing long. As can be seen on the 15 minute chart, AAPD had a pullback for consolidation and is now showing some green candles. The Williams alligator is showing divergence on the short time frame moving averages. The RSI indicator topped out pulled back and is now in uptrend showing bullish confirmation. I have entered this trade to participate in the AAPL pullback which as a titan of the NASDAQ affects the whole market. a decent position in AAPD ( along with SQQQ) will serve to hedge the market a bit.
NASDAQ:AAPDLong
by AwesomeAvani
QQQ - Bearish Channel Thesis based on banker candlesThis post is a test of my thesis that I can accurately identify a banker's candle that tests market structure. The Thesis works like this: Bank trading firms need to test the market structure with specific actions on specific days that tell them what the market can tolerate and they base their plans accordingly. For instance if banker candles identify a market structure that can trend down for a certain trend, they will then execute that trend line selling the appropriate volume and delivering the correct price. This means if such candles can be confirmed - then the trend channel can be inferenced. This is a test such that I am predicting the next banker candle (all concepts are marked with green arrows) and that it will be confirmed by testing the trend line at the 9daily MA. Then QQQ will roll over testing the 200daily MA into the Channel. A 5 wave impulse (Elliot Wave) is then likely that will take the price to both retest the 200daily MA, the new "lower low" that marks a "safe entry" and confirms down trend, before then retesting the 50day Moving Average. The low of wave 3 was selected to hit prior highs of the accumulation phase that led to the recent rally (the Bulkowski pennant seen early July). Entry may begin at the 200daily MA if conditions are right. (If slow stochastic falls below 80 at least). We have 2 probable banker candles, now waiting on a 3rd to be confirmed. Good luck!
NASDAQ:QQQShort
by DarthTrader1357
looks like bears have returned to the nasdaqSQQQ TRAMA and VWMA have turned up, and are following the price higher. stiff resistance in the nasdaq along the downtrend line has proved a supply area in the index is sapping momentum out of the bounce. the last time this happened we had a return to the bear market, and SQQQ saw gains of around 8%. id like to see SQQQ RSI get overbought before i count it out, and inversely id like to see TQQQ oversold before im long the nasdaq. if we close the day as a shooting star, bear hammer or bear doji in TQQQ, and SQQQ forms a bull hammer, inverted hammer or bull doji i will be long SQQQ daily. holding above $53.29 id aim for just under $56, and breaking above that id target the mid-upper $65 range.
NASDAQ:SQQQLong
by cerealpatterns
Here's Why the Tech-Led Selloff is Likely Over (for now)In this post, I will attempt to provide evidence to show why the tech-led selloff is likely to be over (for now). I will use the Nasdaq 100 (QQQ) and its inverse derivative, SQQQ, as my argument's basis. The inverse (short) ETF of the Nasdaq, SQQQ, has never closed a weekly candle above the Leading Span B of the Ichimoku Cloud (pink line in chart). Last week and the previous week, the weekly candle was very strongly resisted at this level. Now, the weekly and monthly momentum oscillators started to move in the opposite direction. This will not only make it much harder for SQQQ to pierce the line, but it could also result in SQQQ plummeting quickly, and therefore QQQ and the Nasdaq rebounding quickly. For comparison, many data points are covered in this chart, and there is a high statistical probability that the Nasdaq has bottomed. Not even during the peak fear of COVID-19, when the global economy shut down and governments feared millions of deaths, did SQQQ pierce the weekly Ichimoku Cloud. In December 2018 when the Fed was starting to rapidly roll off assets on its balance sheet and was raising interest rates, SQQQ still did not pierce the cloud. This fear is very similar to today's fear. Even further back, not even during the major flash crash in 2015 or on Black Monday in 2011 when the market crashed did SQQQ pierce the cloud. Today, hardly anyone remembers these episodes in stock market history. Similarly, in ten years or so, few people (except maybe those who sold all their positions at the market bottom) will remember what happened in May 2022. The NDTH is a chart of the percentage of Nasdaq 100 stocks that are above their 200-day moving average. It dropped to nearly 10 in May 2022, meaning almost 90% 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. There are many other examples in which the charts suggest, with high probability data, that we just experienced a significant bottom on the Nasdaq 100. (Eg. The Nasdaq 100 was supported on the monthly base line, the monthly candle is extremely bullish, the monthly EMA ribbon of the QQQ/SPY ratio chart strongly held the outperformance trend in place, inflation and interest rate charts are cooling. Although this may be a significant bottom, it does not mean a years-long bull span is ahead. Rather the charts suggest the panic selling has ended for at least the short to intermediate-term. To be fair, some charts suggest that the QQQ/SPY outperformance trend could be nearing the end of its decades-long run. (Credit to @Breakout_Charts for identifying this) If this occurs, then it could be the start of a new cycle, or even super cycle, whereby the Nasdaq underperforms for years. Finally, a point about market psychology. Bottoms occur when 'extreme fear' turns into just 'fear' (yes, there's actually an indicator that measures this). That indicator has moved significantly from 'extreme fear' towards 'fear'. With this said, there might be a lot of people who might comment on this post and say scary-sounding things about the state of the economy or stock market. If none of these fears existed among market participants, we would never even have gotten to this bottom. Never sell because of fear alone. Not financial advice. As always anything can happen. Just my thoughts. Leave a like if this was helpful and you'd like me to post more analyses. Please feel free to comment below if you have additional thoughts.
NASDAQ:SQQQEducation
by SpyMasterTrades
5
Look Out for Bull Trap!Looking at weekly QQQ: In the last recession, after confirming it via Sep 2 EMA crossing, we saw within 2 months of that crossing a very nice bull rally week. But it's a trap! We can see it was a trap by waiting for the week to play out & notice that BBPower was very weak, as shown via yellow circles. The bulls now are fatigued from the bears & want to get over this recession already, but make sure you confirm bull momentum is there before going back in, whether you are getting out of shorting via SQQQ or going long with TQQQ. We recently confirmed this recession from the Jun 6 EMA crossing, so be patient.
NASDAQ:QQQ
by roelds
4
Nasdaq100 The Nasdaq100 NASDAQ:NDX couldn’t hold above the support levels mentioned in our last report at 11376 points and opened the week with a gap below the significant 50%Fib. Level to open at 11472 points signaling that the bears are controlling the market backed by the bad news of the economy, then bears confirmed their control after the FED rate hike of 0.75 % last Wednesday to raise the interest rate to 1.75% and that will be reflected and affecting the earning results of the companies next month, breaking the 200EMA this week and closing below this level at 11265 points is the first confirmation of beginning a bear market on the medium term and may be the beginning of a downtrend on longer term. The NASDAQ:NDX may witness a rebound to test the level of 11376 again and failing to penetrate this level or forming a lower high before even testing this level will be the second bearish signal for the index and that will lead the NASDAQ:NDX to more losses and we may witness panic selloff sessions, especially if the NASDAQ:NDX break the 10600 points level which is the most important and significant level on the medium term. Investors with long positions are advised to use a disciplined risk management tools and activate the stop loss with all trades firmly Investors with short positions are advised to use just 30% of their cash and use the trailing stop and the protective stop strategy NASDAQ:NDX TVC:NDQ NASDAQ:QQQ NASDAQ:TQQQ AMEX:PSQ NASDAQ:SQQQ AMEX:SPY SP:SPX AMEX:SPXS TVC:DJI AMEX:SPY AMEX:DIA AMEX:DXD AMEX:DOG NASDAQ:IXIC
NASDAQ:NDX
by IsmailAbdulMeguid
First Time This Has Ever Happened for Tech StocksSQQQ is the ETF that tracks the Nasdaq 100 ETF (QQQ) inversely. When tech stocks fall, SQQQ rises. Traders therefore use SQQQ to short tech stocks. This is the first time, in its 12-year history, that SQQQ shows a fully red heatmap of the daily timeframe. A fully red heatmap represents extremely overbought conditions. This is worse than the bottom in March 2020 and the bottom in 2018. This heatmap reflects that too many traders are too fearful of tech and growth stocks right now as they have all switched to shorting them. Although it's hard to predict bottoms, this indicator coupled with the extremely low NDTH value (the percentage of Nasdaq 100 stocks that are above their 200-day moving average) could indicate that peak fear is occurring right now and that a potential rally will occur soon. The last time the NDTH was this low was on the exact day of the March 2020 bottom. Therefore, even in a recession, these values suggest bottoms.
NASDAQ:SQQQ
by SpyMasterTrades
12
QQQ Fed Rate Hike is Coming on June 15!If you haven`t noticed Jamie Dimon`s prediction: Then you should know that The Federal Reserve is expected to raise interest rates by a half of a percentage point for the second consecutive time on June 15. More rate hikes are likely in the coming months because consumer prices rose 8.6% YoY through May. Inflation is at 40 year high! Jamie Dimon, the JPMorgan Chase CEO: "Right now it's kind of sunny, things are doing fine. Everyone thinks the Fed can handle this." "That hurricane is right out there down the road coming our way." "We just don't know if it's a minor one or Superstorm Sandy. You better brace yourself." Jamie Dimon is predicting an economic "hurricane" caused by rising inflation , interest rate hikes and the war in Ukraine. If oil reaches $140 - 150 this year, then this is the strongest sign of a recession or if China invades Taiwan. Looking forward to read your opinion about it.
NASDAQ:QQQShort
by TopgOptions
1
Tech Stocks This chart highly suggests that capitulation and peak fear is finally here. This is the chart of SQQQ, which is the inverse derivative of QQQ, which in turn tracks the Nasdaq 100. There's virtually no way that SQQQ's price can sustain a gap up like this on a weekly time frame. The gap is extremely likely to close and the price will move back below the Ichimoku Cloud resistance by the end of the week. Those who are just now selling tech and growth stocks because of inflation are capitulating. Inflation and rate hikes have been evident in the charts for over a year, and it, therefore, makes no sense to just now be selling tech. See my post here for why I believe this is the bottom for tech: With this said, if SQQQ does indeed close the week above the Ichimoku Cloud resistance and EMA exp ribbon then we're looking at a market crash. Statistically, this is highly unlikely to be the case though. The NDTH is far too low for QQQ to break down and crash just now. We are in peak fear/peak inflation/peak capitulation this week. In fact, this is a super good risk-to-reward entry. One can enter TQQQ/QQQ/tech this week and stop out on Friday if support breaks at the weekly close. If support holds, you would have bought in at the absolute bottom. If the Fed hikes rates by 75 bps on Wednesday, it's quite likely that the markets will quickly rally from this low. Not financial advice. Anything can happen. Trends can break.
NASDAQ:SQQQShort
by SpyMasterTrades