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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
HUB.TA Jumps +50% in June as Global Tech Industry Slumps2022 has proven a volatile year for HUB Security investors, and not for the reasons dragging down the tech industry at large. Back in March '22, HUB (now listed on TASE) announced the closure of a SPAC agreement with RNER for a Q3/4 NASDAQ listing. After an astronomical rise to over 900ILA from ~380ILA at the start of the year, the stock took a nosedive to a YTD low of 261LA in early May. Investor jitters over the SPAC deal, the global pullback of the tech industry and stocks, and a worsening macro-economic backdrop overall were the main drivers of this see-saw motion over the past 6 months. Things are looking quite a bit greener this past month--June 2022--as HUB has regained its footing and is currently tracking a highly-encouraging uptrend. From its May 12th yearly low, HUB has climbed to over 600ILA and counting. Meanwhile, the rest of the market is getting clobbererd--as you can see, QQQ and leading cyber ETFs like CIBR and BUG are all down around 4-5% in the past month. Similarly, two of HUB's closest peers in the confidential computing sector--PANW and FTNT--are also down about 2%. Though confidential computing seems to be outperforming tech/cyber as a whole, the niche is still in the red amidst rising turbulence on global equity markets. So what is behind HUB's recovery and recent gains? I added HUB to my watchlist back in March following their SPAC deal, and have been closely watching as their SIR inched upwards MoM. HUB's SIR moved from 0.48 on May 12 to 0.84 on May 19th and then 0.82 on May 26th. That means >80% of trade volume was dominated by short activity. The company has clearly been making moves to combat malicious shorting, including the company's announcement of intention to buy back $4.5M USD worth of shares in order to force the shorts to cover. On June 9th SIR had been driven back down to 0.48, helping to explain the early-month momentum. While SIR had jumped back to 0.7 as of June 16th, it looks like the bulls had already established some upward momentum. HUB SP has increased by more than 50% in the past week alone, strongly suggesting that investors are trying to establish positions in anticipation of the value multiplier shareholders will enjoy come the NASDAQ listing. I will be interested to see how HUB's SIR looks on June 23rd, but higher-than-average trade volume and a month-long uptrend (see PVT, 30D MA shown on chart) are signs that despite the worsening economic picture on a macro-level, HUB is trading strong and girding for success on US Markets.
H
by EagleEyeAnalytics
Datadog, Inc 80% Decline UnderwayDatadog is an observability service for cloud-scale applications, providing monitoring of servers, databases, tools, and services, through a SaaS-based data analytics platform. Annual Revenue: Datadog revenue for the twelve months ending March 31, 2022, was $1.193B, a 77.9% increase year-over-year. Datadog annual revenue for 2021 was $1.029B, a 70.48% increase from 2020. Datadog annual revenue for 2020 was $0.603B, a 66.34% increase from 2019. Annual Net Income: Datadog annual net income for 2021 was $-0.021B, a 15.49% decline from 2020. Datadog annual net income for 2020 was $-0.025B, a 46.9% increase from 2019. Datadog annual net income for 2019 was $-0.017B, a 55.27% increase from 2018.
NASDAQ:DDOGShort
by KnowledgeAndProfits
NAS100 Forever Dropping! 😎🥱🐋No one, absolutely no one, can tell you what the hell is going on in the tech market. But we can at the least try to come up with our own explanations. For me, I think the market is just correcting because of all the inflation scares. We may see this week turn bullish. A move up to 12 800 may be a good sign. And a close above the open price today may start the pump up to 13k. If the drop continues then the next support area I would target is at 10 864. Share your thoughts down below. What do y'all think!?? Make suree you secure the bagg!!! 💰💰💰🤑🤑🤩🔥✔📈
FX:NAS100Long
by tshiiamom_sa
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
$BTCM earnings tomorrow 👁‍🗨*This is not financial advice, so trade at your own risks* *My team digs deep and finds stocks that are expected to perform well based off multiple confluences* *Experienced traders understand the uphill battle in timing the market, so instead my team focuses mainly on risk management My team entered Bitcoin Mining Company $BTCM today at $1.78 per share. Our first take profit is $2.40. We also have a stop less set at $1.60 This company is a standout from other Bitcoin mining companies. It doesn't exactly trade the same as the others due to China relations, but with investors now eyeing investments overseas this could become a goldmine soon. OUR ENTRY: $1.78 FIRST TAKE PROFIT: $2.40 STOP LOSS: $1.60 If you want to see more, please like and follow us @SimplyShowMeTheMoney
NYSE:BTCMLong
by SimplyShowMeTheMoney
Amazon Pricing in a Great Recession...This is simply an observation: The yearly return on Amazon (AMZN) is approaching the yearly return it had during the Great Recession. Are markets becoming too fearful? Are we truly as worse off now as we were during the financial collapse in 2008? History has shown that more likely than not, ten years from now most people won't even remember why there was panic selling in June 2022. How many people remember why the stock market crashed in May 2010, August 2011, or August 2015? The VIX was much higher in each of these months than it is now.
NASDAQ:AMZN
by SpyMasterTrades
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
AAPL Breakdown ideaFrom left to right on the chart. Price established support at 151 / 152 level and after it lost it, price dropped to a new low at 140 (also psychological) From there we had a mini rally towards 150 forming an ascending wedge. Once the wedge broke,(great short trade) we saw price just collapsing and not only retesting the bottom of the wedge but making a new low at 133. Fasting forward to current Price action and my personal game plan. I was initially tracking a symmetrical triangle, where i almost for trapped at the top twice. With that triangle failing and a possible short term double top, i am watching to see if we can lose support for a nice R:R short position. You can notice a trendline from the lows at 133s. I will be watching tomorrow 144.36 support, which is the trendline. If we break it to the downside, i might try a quick scalp towards 143.11 (risky) Previous resistance, will likely act as support, but below 143.11 good chances we test 140.
NASDAQ:AAPL
by TheBullandBearLounge
Buying Opportunity: Cloudflare (NET)Chart analysis is showing that Cloudflare (NET) is trying to form a bottom at an important Fibonacci level. Currently, there is momentum to the downside on the daily chart and a gap to be closed at 46.38. It's therefore likely that with the downward momentum, NET will attempt to close this gap and then quickly rebound up to 59 as it will also try to maintain price at or above this level for the monthly close. The weekly charts are already showing bullish signs and the asset's underperformance relative to the S&P 500 has already slowed down, which virtually always occurs right before a reversal. The Wave Trend Oscillator by @LazyBear shows that momentum to the downside on the highest timeframes is already bottomed and will soon start to revert back to the upside. On the daily chart, Heikin Ashi candles and Fibonacci Bollinger Bands also show signs of a bottoming pattern forming. The daily RSI has been showing bullish divergence since May. Therefore entering NET at prices around the gap closure at 46.38 could be a great risk-reward entry for long-term investors. Although anything is possible, it's statistically unlikely that NET will make a full retracement and fall much lower than the gap closure. In the years to come, Cloudflare will likely go to the moon. Not financial advice.
NYSE:NETLong
by SpyMasterTrades