A Look at QQQ Over the Long TrendI am a big believer in big tech and it's disruption over the long term, but the recent action in the stock market has made me take a step back and study how the QQQ index has performed over the longer term. I have plotted the chart dating back to the 2009 bottom and there seems to be a clear uptrend since then. We checked back to that uptrend line a few times and have continued moving higher. Recent action in the stock market seems to be forming a top formation, which is a very bearish indicator. We might be getting into a head and shoulders pattern over the short term and I will make the bet that we break that head and shoulder pattern and fall into the longer term uptrend of the QQQ's. I will look for some support at the 159 and hope that holds for some sideways movement in the short term.
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Techstocks
Wirecard is going southNice trend channel to the downside that supports the bearish sentiment.
Next stop is the 200 EMA support zone.
DANGER: Amazon and FANGS could be in trouble. Amazon has just crossed $1 Trillion in market value.
This is without doubt a parabolic expansion. History has shown us that parabolic charts like this suffer a significant correction. Do not expect me to say when - as I have no crystal ball.
Tech stocks have been propping up Wall Streets expansion. But there is a problem. The stock markets in the US and around the world are being eroded in value. Google is your friend. Around the globe there is market contraction due to trade wars and international political tensions.
Reliable research shows that value of stocks below the top 30 is falling in average. This is a danger signal.
The traditional 'news' is not your friend. From day to day we hear different news casts. These people are there to sell their news - that's all. Dig deeper. The world is in trouble!
Amazon cannot fight and win over the whole world. It just ain't that big or powerful.
Tech stocks have been living on borrowed time and feeding frenzies. If Amazon goes south, and the rest of tech goes south, expect to see major corrections on Wall Street.
Those looking to short the stock markets may wish to look for trend changes on the 4H - 6H time frames and with Amazon.
If I Could Buy One Stock for the Next 5 Years,It Would Be NVIDIATake a look at its 720% surge since 2016.
Now I know you might be thinking: Stephen, this stock has already had a heck of a run… why buy it now?
I understand the concern.
But when investing in truly disruptive companies , this way of thinking is often a mistake.
From 2009–2013, Amazon (AMZN) stock gained 680%. Most so-called “experts” said the easy money had already been made. In 2013, CNN “reported” that “Amazon is one of the most overvalued stocks.”
Amazon has soared another 700% since 2013.
Nvidia Makes High-Performance Graphic Processing Units
Nvidia developed the first mass-market graphic processing unit (GPU) in 1999. GPUs use what’s called “parallel processing,” which allows the chips to perform millions of calculations at the same time.
That’s different from the way other computer chips work. Most computer chips, like the one powering the laptop or phone you’re reading this on, calculate one by one.
At first, GPUs were mostly used to create realistic graphics in video games. Remember the blocky Nintendo graphics from the early ‘90s?
The ability of GPUs to process huge amounts of data all at once helped create the movie-like video game graphics you see today.
GPUs Are Ideal for “Training” Artificial Intelligence
I’m sure you’ve seen the Hollywood movies about AI going rogue and attacking humans.
In reality, AI isn’t that glamorous. It all comes down to processing massive amounts of data.
Show a computer millions of pictures of a stop sign, for example, and it will learn to recognize stop signs on its own in the real world.
AI is the driving force behind Google’s self-driving car subsidiary Waymo. As I recently discussed in the RiskHedge Report , Waymo’s robot cars are cruising around America’s roads right now.
At the core of Waymo’s self-driving car fleet is a centralized “brain.” It has learned to recognize stop signs, pedestrian crossings, red lights, and all the other obstacles that human drivers navigate.
The Likes of Amazon, Google, and Microsoft Use Nvidia Chips to Train Their AI
The faster a computer can process data, the faster it can “learn” by recognizing patterns in the data.
Nvidia latest chips process 125x faster than traditional computer chips. They can process 125 trillion data points per second… which slashes AI “learn” times from eight days to eight hours.
This is why more than 2,000 companies including Amazon, Google, and Microsoft use Nvidia’s hardware to “train” their AI programs.
Last quarter, the revenue Nvidia earned from selling AI chips and hardware jumped 82%. In the last two years, AI-related sales have accounted for over 70% of the surge in Nvidia’s revenue. AI sales now make up 24% of its total revenue.
Most Self-Driving Car Companies Use Nvidia’s Products
As I mentioned, Nvidia supplies self-driving car companies with chips that “train” cars’ brains. It also sells hardware that processes data from the cars’ many cameras and sensors.
For example, Nvidia’s self-driving supercomputer, named Pegasus, can tackle 320 trillion operations per second. And it does so using one-third the electricity at just one-fifth the cost of its closest competitor.
Over 370 companies working on self-driving cars now use Nvidia’s products. Auto sales make up just 5% of NVDA’s total revenue today, and I see this exploding higher over the next few years as true self-driving cars roll out.
I mentioned earlier that $100 billion has been spent on developing self-driving cars so far. With the likes of Google and Apple pouring billions into driverless projects, I see that jumping to $1 trillion over the next two to three years.
Thanks to its superior technology, I expect Nvidia to capture a large chunk of this.
It’s a “High-Flying” Tech Company, but Extremely Profitable
Nvidia is nothing like many of the barely profitable tech darlings (like Netflix) out there.
While many high-flying tech stocks get by on stories and hype, Nvidia is extremely profitable.
It has a net profit margin of 33%. That is, for every $1 in sales, $0.33 becomes pure profit.
That’s better than Google’s 21% margin… and even Microsoft’s 29%.
Nvidia’s high margins allow it to continually pour cash into Research & Development (R&D). It reinvests close to 20% of its revenue into R&D every year, which is a key reason why it has blown away its rivals.
Nvidia is financially sound, too. It’s sitting on a record $7.95 billion in cash. Which is enough to pay off its total debt four times over.
Why I’m Not Concerned About Nvidia’s Price-to-Earnings (P/E) Ratio of 39.
Can buying a stock at such a high valuation be risky? Sure. But Nvidia deserves its rich valuation.
Nvidia’s earnings are growing at almost six times the rate of the S&P 500. Yet its P/E ratio is not even double the S&P’s.
I think investing in a company like Ford (F), with a P/E of 5, is far riskier than buying NVDA. I can hear the groans coming from the value investors out there.
But the fact is, Nvidia is leading the self-driving revolution… while Ford is going to get crushed by it.
Because it is powering today’s most disruptive trends, I see Nvidia doubling over the next two years.
AMD will continue to rise as Intel Drops for the competition! Intel and AMD are both making industry moves to be the best in processing sales. AMD is in front as of right now but it has also been rumoured to have a AMD chip with Intel technology to help both companies grow together. This is yet not confirmed but it is defiantly an opportunity for the market. having both companies together but having AMD sel this product will grow AMD over Intel. Intel will also grow but Not as fast as to the news it will be a product of AMD not Intel. so keep your eye on AMD over Intel for technology stocks But at the same time watch for confirmation on the new processor created by both.
-Jon Matthews
I have no idea what this company is, but I am going long here :)Chart is all I need.
This random company is going up.
Strong support.
Simple.
This trade probably last several weeks, stock market is only open a few hours a day 5 days a week minus all bank holidays, I think this makes it slow.
Just going to do nothing and wait till it goes up and then try figuring when to get out.
No one sees the potential in YandexNASDAQ:YNDX Looks undervalued. Big gap in price vs stock performance & fundamentals. Btw looks like they were aiming for more long term results last quarters. Strong buy on breakout!
ABC Correction is Complete. Moon Time!I think the ABC correction is done and we're probably heading for another Impulse Wave. 4h RSI is at 20 which has been a good buy signal historically. We're also at a good trend line support. Hoping to close this position at around $52 with no stop loss.
Happy Trading :)
Experiment a new strategy with stocks. Tech stocks mostly.Going to base this on divergence at resistance, divergence of several indicators/oscillators.
Looking at several timeframes.
Let's see how this goes.
I allocated $1000 to a CFD account, just for experimenting (demo accounts with fake money are boring).
I think it should work, but let's see how it goes after 10-20 trades.
Oh also I have to remember to separate between bear trades and bull ones.
I bet bull work all the time...
US stocks updates. Anyone has a clue how this works?Long on my bank account!
Goodbye crypto you bore me to death.
Time to look at US Stocks.
They say in FX (and I figured Oil too) what you have to do is understand the patterns then your job is doing the same trades automatically, which is what I am doing, my system is near perfect now. I think I am good to go, every week end I check the charts and feed my custom indicator, I got a few tweaks to make on it but it should be good to go next week nothign can stop me now. Except regulators...
See? Took me 1 month of manual trading + 1 month of semi-auto trading in FX to figure it out and from now on it is just autopilot.
They say "using a magical indicator to get easy trades finding the perfect system is what retail traders look for but it is not possible".
I said "Stay silent worm and watch as your god does exactly that!"
And I did it. Took 2 months.
Easy!
But stocks, they say stocks are different... no autopilot is possible, you have to constantly analyse it...
Argmpf but I am so lazy. Now I am looking for patterns, and in particular I am looking to go with the trend on retraces, I think it is very possible I find a winning strategy here. Going to spend the week end typing values in an excel file... Just like what I did with FX... It's all happening over again.
Not that many ideas about stocks on TradingView, unless I missed those?
Ideas comments welcome...
Anyway, going full autopilot is pretty dull, at least I'll spend time having fun checking bagholder quotes to "get a feel" of a stock, and constantly check what direction it is going.
For now nothing. I will check a dozen stocks with high volume and clear trend this weekend.
Nasdaq Head and Shoulders Measured Out, Bear Market Bounce?Just like the SPX and DJI charts I looked at, this thing measures slightly past the Bear Market threshold... it may touch the target, doesn't mean it will close there though... If the current top proves to be the last shoulder, July 27th is when this is expected to play out by
Intelligence Front RTNB Insider Trading Before Delisting, Stock got halted before the close, the day before it was to be delisted. It never opened back up, volume was significant, all the scanners picked it up so it was the biggest mover of the day. My guess is either someone had a lot of naked shorts they needed to cover before they removed it from the Nasdaq, or somebody had a deal with someone to cover their shorts to drive up the price so insiders could dump whatever shares they had left. Very unusual that it would trade that much on such negative news, then get halted for several days. Also, and this is just my opinion, but I think this company was a front for some intelligence operation. You have General Michael Hayden, a retired four-star general who served as director of the Central Intelligence Agency (2006-2009) and the National Security Agency (1999-2005), and Michael Chertoff, former director of Homeland Security, and co-author of the Patriot Act, on the advisory board. The company then goes under, gets dished off to a private company that's connected to the Trump administration. I feel bad for the shareholders that ended up holding the bag. Seems like this is the tip of an iceburg bigger than me, but it was interesting digging into this thing. Company also had 200 employees
Global Blockchain Technologies Breakout?Over the last few months Global Blockchain Technologies Corp broke out of its long price action slump with the announcement of a name change (...LOL...). Now they have announced involvement in crypto mining. Coupled with the fact that institutional investors are super yield hungry in an environment with prolifically low return on capital rates - even negative with inflation in many cases - this could be a monster trade.
In pure technical terms, regardless of the fundamentals, we have an ascending wedge that could breakout to the upside. A break above the max consolidation range will also be a signal taking this stock very high, which used to trade at one point in time at $460!
Cheers and GLWT!
-Erik
NASDAQ Could Offer KILLER value in the futureThis quarterly trend line projected from the Q4 '08 and Q3 '10 key lows is what has held up this long-term rally and is extremely significant because of that. There's been some talk lately in the trading community about the reliability of trend-lines and whether or not they're useful, judging by this chart I'd say if drawn correctly they're pretty damn reliable...
This is an ideal time for a high on the quarterly time frame according to bull cycle counts. If price can bounce and pullback to the trend line and reject it with some nice price action I'll buy the hell out of it (notice how the fibs and major 2000 high sit right on top of that area). If it breaks this line then look out below...
There may be some opportunities to play a move (short) into that support area via this index and/or $AAPL but I need to see confirmation of a top. I'm not trying to get honey-dicked with a bear trap like everyone whos been shorting US equities over the past year or two.
I'll post more analysis and go over the opportunities once things become clearer.
Checkout my website @ PatsTrades (link is on my profile page below my picture) for my analysis on other trades like this and subscribe to avoid missing out on ideas and entries.
Thanks!!