NDQ
Hanging man: to short the Nasdaq or to be sent to the gallows.This is the strongest bearish pattern ever.
Happen one to twice a year.
Cause of it, the index felt hard on early post-market.
I advice to short the NDX with x3 leverage at the closing / in the post-market. But it's probably too late for you now, a lots of traders did it and the index felt hard... Btw it's good to know for the next time you will see this pattern...! Easy money.
The last 4 hanging-man spoke for themselves...
If you want to see what happen after a hanging man (10 previous years on NDX and SPY), glance at my excel sheet:
docs.google.com
I sold at the closing (15130), took the profit from yesterday purchase (there is no small money! :D), then short with x3 leverage.
2022_02_02 - Mr. $NDQ - NasdaqWe are getting to that specific, and delicate moment in time, where things can go from one extreme to the other. It would depend on the hand that moves the market.
No one may predict specific targets or how things are gonna go.
There are going to be external factors that would affect one way or another. History have shown us that.
Im a guy that believes in cycles, so for now .. remember we are near 100 year cycle crash .. there are some numbers that have been appearing in personal analysis .. once over again.. 29/30/31/34/ 45 / 49/50 .. i have not seen much in 40s for now.. it means events from 30s would lead the way and show the path.
But also remember you may stablish probabilities and possibilities.. If you draw all the possible variants ... then is easy to make a plan for each situation.
It is absurd to believe that curve is going to continue, but hey.. im not here to judge jaja..
Ill be using only larger periods of time. I would go from 1 Month to 12 Month .. and dive in less periods of time once we check bigger timeframes.
I'm not taking any positions at the moment so.. that's why i'm neutral at this point.. and i would probably wont say which way .. take your own choices .. besides.. i have learned that if you scream what you would do to the four winds, market is affected.. so better quite on just observer :P
There are signs at 1M that things are coming to lower areas in volume and RSI... hard way.. but price have not move that much really, and that only means moves are coming.. probably hidden divergences between price and RSI.
ill upload and update once in a while.. when i have some free time..
Since this is a long time frame analysis, ill be posting in the long term eternally jajaja lol .. hope to still be alive to see which way it goes ;)
This is a long term commitment lol :P
As usual.. this are personal ideas and not financial advice. Use at your own risk!
Cheers!
-CharterX
Tech's Multi-Decade Dominance Being TestedThis is a fascinating chart. Since 1985, the NASDAQ 100 Index has been consistently outperforming the S&P 500 except for 2 years following the bursting of the Dot.com Bubble.
Also of note is the well-defined downtrend line that has been tested several times in the past, and is currently being tested again. The ratio is currently near the same level that marked the top of the last tech bubble peak, and is facing pressure from tightening financial conditions.
Watch this chart closely for clues to selecting asset classes that will outperform going forward.
New bullish channel for N100 and SP5002 entries (one aggressive and/or one filtered), at the end of the two biggest previous crash...
I bought NDX at the closing price (15018), with a stop-loss at -3%, and I advice to put only 20 to 33% of the money to have a risk below 1% (the past weeks were all doom and gloom and we do not know for sure what could happen next...)
If you want to download an excel file for what happen to NASDAQ:NDX and AMEX:SPY after one aggressive entry + a second entry on the past 10 years+, download this file:
docs.google.com
If you like the idea, say it! :)
IMPACT OF US 10 Y YIELDS ON MAJOR US INDEXESWe always here on the financial media of the inverse correlation between US 10 Year yields and the major stock indexes. Understanding this correlation may give you insight as to how to deal with a rising rate environment. In Tradeview, you can easily compare each index with the 10 Year Yield (US10Y) to view how they correlate. For simpicity I have done this only with NDQ which is the index that has the strongest degree of inverse correlation. It would be a good excercise to do this with SPX, DJI, IWM and FDM (Microcap). The results may suprise you in that there is no where near as much correlation in those other indexes and FDM seems to have the least correlation.
There are many inputs to price action. Interest rates are just one. So for maximum impact, I limited the period of time I looked back to mid-May 2021 when we were apparently saw light at the end of the COVID tunnel (for the first time). This is also a bit after many Americans received their third economic impact payments which is about the time interest rates started moving. This chart shows:
1. It takes a large changes in interest rates to significantly impact the NDQ index
2. There appears to be a delay of 3-4 weeks on these changes on the direction of the NDQ index. Perhaps you can use these pivots to predict future price action on the index?
3. The latest steep rise in rates has only recently impacted NDQ which is in the final stages of forming a head and shoulders top. If we continue to see bearish action this week, the neckline may be broken and even retested within the next 10 days.
Last year IWM dramatically underperformed the other US indexes which is unusual in a good year. Normally small caps lead such advances. The big suprise is that the micro-cap indes, FDM outperformed all other US indexes and seems to be pretty unaffected by these interest rate changes. Even after a massive rally in 2021, most of FDM's top holdings have a very low but positive PE and are still trading at or below fair value. At the time of publication of this idea, all major US indexes were down 1.7% (SPX) - 2.5% (Russell 2000). FDM is down 1.62%.
17500 on The CardsThe bottom trendline of the major weekly channel held with the most recent push to the downside. This indicates the presence of institutional demand and the chances of new all time highs is good. There is also the formation of a bullish corrective structure as indicated by the green flag. This does not mean that there is no longer downside risk and I will be keeping a close eye on the low of the recent daily spike. A close below that may indicate a more significant correction.
I am currently long and remain bullish but will be watching the resistance of the structure. The upside target will depend on if and whether the flag breaks after 3 or 5 downward moves.
Happy trading!
Linton
We've been in a huge bear market since February - nobody noticedEver wondered why your stocks keep going down although US Indices are at an All Time High?
Here is (most likely) the answer!
I've managed, with some degree of inaccuracy, to extract Nasdaq100 companies from the Nasdaq Composite Index .
This basically represents all stocks on the Nasdaq Exchange excluding Megacaps and SuperLareCap stocks.
The result is truly mindblowing - We've been in a huge bear market since February. During the last week, normal stocks have crashed with intensities not seen since the Corona Crash. 🔥
Disclaimer: The ratios used in the formula are just guesses - Tradingview doesn't provide any Index/Stock Exchange Market Cap data (yet). With those I could figure out the exact formula.
$NDQ #QQQ $QQQ pulling a Wu-Tang patternlooking at the 1hr chart, there is a classic W pattern formation going on here. December was a tough month for tech, and looks to be finally recovering. This weeks moves show a break above the prior down channel, with tightly wound consolidation. TBH I see this going in either direction, but with the tax loss harvesting done for 2021, my money is on volume buy-ins this month, with a beginning of a reversal in March when tapering is ending and rates are set to go up.
NFA
Barron's big money poll on a chartFor decades the Barron's big money poll tries to gauge the psychology of the market conducting a survey of the fund's managers, every 6 months.
I plotted on a chart the results of the last 7 surveys.
In the callouts are the titles of the results .
The line represents the bulls forecast (in green) and the bears forecasts (in red) , using their estimated targets (the end of the line is the date of the target, the coordinate is the target).
The numbers in green are: the proportion of bulls / the proportion of managers thinking that the market is undervalued .
The numbers in red are: the proportion of bears / the proportion of managers thinking that the market is over-valued .
One survey only sets a target for bulls and bears togethers, so the line is blue.
It's neither technical analysis nor fundamental analysis. It's an attempt to know what the others are thinking... ;)
It should be noted that round 5 times out of 6 the NASDAQ outperformed the bulls targets...
DXYDXY has another push coming, I would say $98.20-$99 blow off top, problem is H1- H4 are overbought and I cant be sure if DXY takes a LTF dump B4 the blow off top or it's just a LTF dip B4 the mega push to the dollar ensues & most likely this blow off top coupled with 10yr rates dumping to 1.2% or even lower to 1% will likely be that 4400-4500 SP500 dip & 15,100 NDQ & possibly 1 more crash to the crypto. So I can see it coming but I just cant pin point the TF TBH
Long if it cross the levelThe 22 and 26 of november I have started to short the Nasdaq100.
On the 26 all my technical indicators turned bearish.
December the 3 the N100 has lost 7.3% from his previous high, and went widely below the -2DS of the Bollinger Band.
Surprisingly between the 6 and the 7 the N100 took +1.78%. That's the biggest up-gap since march. Moreover in a bear market...
When it comes to fundamental analysis, nothing big happened (only some good news for the chinese market and the fear of Omicron fading, cf Barron's...)
And now all my indicators turned bullish...
Without touching the support (first time for more than a year).
I would advice to buy if the market cross the previous level that it failed two times to go over.
Or even to buy now...
The risk-reward would be between 1.5 and 2, not so much unfortunately.
The blue resistances are the previous ones. The black the current one. And the orange could be the next...
My indicators of a bull market, all fully activated:
SAR, MACD, Premier Stochastic Oscillator and Squeeze Momentum.