• 145 days Could Crypto Overtake Traditional Investment?
  • 150 days Americans Still Quitting Jobs At Record Pace
  • 152 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 155 days Is The Dollar Too Strong?
  • 155 days Big Tech Disappoints Investors on Earnings Calls
  • 156 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 158 days China Is Quietly Trying To Distance Itself From Russia
  • 158 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 162 days Crypto Investors Won Big In 2021
  • 162 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 163 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 165 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 166 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 169 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 170 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 170 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 172 days Are NFTs About To Take Over Gaming?
  • 173 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 176 days What’s Causing Inflation In The United States?
  • 177 days Intel Joins Russian Exodus as Chip Shortage Digs In
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

SQQQ (3 x SHORT QQQ ETF): Long Setup

60 minute time frame:

  • NDX has carved out a potential reversal pattern (Rising Wedge)
  • If the lower trend line of the assumed Rising Wedge is breached the wave (v) would have truncated
  • Given the size of the Rising Wedge, if it plays out, odds should favor a penetration of the S2 = 4435
  • If this is the case price could be heading towards the gap fill at 4287
  • The negative divergence of the hourly RSI strengthen the bearish pattern
  • Hence I am looking to implement a long setup in SQQQ (3 x Short QQQ ETF)

NDX 60-Minute Chart
Larger Image

Daily time frame:

  • Today's Doji, with the rebound off the 10 dma, is suggesting that the wedge is probably not done yet
  • Once the wedge is done we have three critical support layers to be watched for a potential bottom: S1 = 200 DMA; S2 = 50 dma; S3 = Gap fill at 4287
  • During the assumed pullback I do expect a higher low.

NDX Daily Chart
Larger Image

  • The RSI (14) is displaying a negative divergence. The loss of the trend line would confirm the reversal Pattern
  • The MACD so far has a new bearish signal cross

NDX Daily Momentum Chart
Larger Image

  • Since the beginning of April NDX is showing relative weakness versus SPY

NDX versus SPY Chart

Therefore I think it is worthwhile to be prepared to open a long position in SQQQ ( 3 x Short QQQ ETF) if above 17.93 with an initial target T1 in the range of the 50 dma = 20.61 - Gap fill = 21.25

SQQQ D1 Chart
Larger Image

 

Back to homepage

Leave a comment

Leave a comment