SQQQQ Short Entry Descending Triangle Market seems to be experiencing minor corrective wave, SQQQ should be doing same. Final Price target in 30's before next impulse wave.
SQQQ trade ideas
Selling my position at 57 for 13%My position was opened at 50.50 and I am now letting this go for a 13% profit.
bearish reversal in the nasdaq, bounce over?weve seen a pretty bearish reversal in technology this morning as the bounce falters at stiff resistance. if we continue looking this direction id imagine we hit that vwma currently sinking around 53.43, and cool off a bit, but since weve come out of bullish divergence RSI in SQQQ (bear nasdaq) as long as we are holding mid 51s we may have the go agead to close the gap at 56
Accumulating SQQQ @ 50.50 USD. Another great accumulation range for SQQQ. Multiple indicators flashing over extended on QQQ charts with a few different timescales.
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.
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.
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.
ABC BullishVolatile and entry level paramount. It is best to buy these on market up days and these go down significantly.
Possible resistance at B/63.86
Leveraged. This moves the opposite way of the Nasdaq x 3. Great when the market is down but will burn you when market is up.
Many do not hold inverse ETNs for long periods of time.
Price is over top band with an 80 DMA. Not overbought yet with RSI on 80 versus 70.
Price returns to bands eventually.
3 year high is 982.25/low 28.15
ProShares Trust - ProShares UltraPro Short QQQ is an exchange traded fund launched and managed by ProShare Advisors LLC. It invests in public equity markets of global region. The fund invests through derivatives in stocks of companies operating across energy, real estate, materials, industrials, consumer discretionary, consumer staples, health care, information technology, communication services and utilities sectors. The fund employs short strategy and uses derivatives such as futures and swaps to create its portfolio. The fund invests in growth and value stocks of diversified market cap companies. The fund seeks to track -3x the daily performance of the Nasdaq-100 Index. ProShares Trust - ProShares UltraPro Short QQQ was formed on February 9, 2010 and is domiciled in the United States.
The investment seeks daily investment results, before fees and expenses, that correspond to three times the inverse (-3x) of the daily performance of the NASDAQ-100 Index®. The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the fund's investment objective. The index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization. The fund is non-diversified. Benchmark: NASDAQ 100 TR USD
No recommendation.
SQQQ Sell TimeI bought into SQQQ weeks ago, when QQQ started tanking. Now there are enough indicators to show greed is too high, so time to sell on this Black Monday, at or near market open.
Notice: EMA, Vol EMA, & BBP quickly trending up signaling too greedy. So take profit & look for next trade. We will see Tue if this is truly the last bottom.
Currently hitting a major accumulation area. Short the NASDAQCurrently seeing many signals on my intra day charts (1Hr) + (4Hr) that we're in a good accumulation region for SQQQ. This is a composite leveraged 3x ETF that is used for the shorting of QQQ.
I am not a financial advisor and this is not financial advise. This is for paper trading purposes only. Thank you!
anything below gap close lower daily highTRAMA is crossing below VWMA and anything under gap close likely confirmation of bear reversal for the inverse, and there are more bearish scenarios realistically than bull for this inverse.
SQQQ Bearish Rising WedgeI know a lot of traders who are in the SQQQ banking on the idea that its on its way to retrace it's gigantic historical prices. I trade by patterns. Sometimes they work, sometimes they fail, for me they succeed more times than fail. What I see in the SQQQ is a rising wedge pattern. Rewind the clock 20 years ago and I would be chasing this breakout with the rest of the crowd. This along with bearish patterns I am seeing in the Vix, I see these 2 forces indicating a reversal in the Equity markets. Dow stocks seem to be leading the way. I think Nasdaq stocks will follow not far behind.
SQQQ H&S? potential Right shoulder, Big bounce @ 50.85 or Breakthrough 50.85 to continue to see Green On QQQ/SPY
$SQQQ to $80Per vwaps...no oscillators, no RSI garbage, no trendlines. Volume weighted average price over "X" time. Is it not obvious enough? $82 is the only VWAP left. Bad news for tech bulls still to come.
SQQQ Regains its Bull TrendSQQQ looking strong as the market appears to be continuing its eventual slide into recession.
SQQ Nasdaq Short ETFPlease don't take this as financial advice, but let me tell you THE CRASH IS COMING.
Sincerely, L.E.D In Spain on 05/10/2022
Riding this drop in the market with spurs on!I'm long with SQQQ! The only news that will change my view of this chart is an end to the Ukraine War. Otherwise the only good news we are going to get this year, won't come until election day.
Potential Right Shoulder with Hidden Bearish Divergence on SQQQI will be Selling Monthly and Quarterly Calls against the SQQQ at the $47.5 Strike as well as using this chart to establish a Bullish Bias on other trades.
NASDAQ ConsolidationConsidering taking profit on SQQQ Calls Weekly & Monthly.
NASDAQ likely to consolidate over the next few days if the remainder of earnings beat expectations. if earnings fail, these positions will explode to new recent highs
bull flag and a recession is going to happenbuilding up for a move up and is above 200 moving average on the 1d chart.
Stock market crash incoming!!!This chart purposely hides the candles that you are not suppose to buy and only shows candles that are "buys". There are other indicators that clearly state "buy". With SQQQ being the inverse of S&P 500, this means that now would be the ideal time to think about protecting your portfolio by buying put options.
I have vertical lines above the dates that have "buy" on the indicator. As you can see, the indicator is correct most of the time.
SQQQ to short NasdaqIf reverse by 13% of NDQ, the SQQQ should go from 30-31 to 48-52 which gives 55-60% of the move.
After 8-9 days of short squeeze on Tech equities (Tesla got >44%) that sounds as viable option scenario.
