Here’s my take on the leveraged ETF for the Nasdaq 100 – November 3, 2023
This is Dan Fitzpatrick with FITZ IN FIVE. I’m looking at the QLD ( NYSEARCA: QLD ), which is the ultra QQQ ( NASDAQ: QQQ ), which is the ETF of the Nasdaq 100 ( INDEXNASDAQ: NDX ). All of these tend to look pretty much the same.
So where is the trade here? I don’t really think there is one, you can see it is banging right up against resistance here, several times. The 50-day moving average seems to be the top here. The 200-day moving average finally got down and rebounded off of that, which frankly, you could have picked the spot.
You could have identified the day when this was going to happen back here. You just extend the line between two points and bam, here’s what happened. This really happened just right on the money, right on time, the train came in right on time here. So do we buy here? You have got to say, no.
However, wait, there’s more. If you look at the weekly chart ( NYSEARCA: QLD ), and now this kind of takes a different tone because I can look at this here and I have a completely different take on this. This is looking to me like a long cup and handle, a very, very long in duration. You see the cup here, it comes back up with a low handle.
This thing has been weak during, what is typically the weak part of the year. But now we are coming into November, and then December, which is seasonally the strongest time of the year, particularly November, after the kind of sell-off that we have had. We have had a really horrible October. I am looking at this, and I am seeing the possibilities.
I can’t predict this, but I am seeing the possibility that any kind of move to the upside next week could put 70.00 into play here, fairly quickly. You could say, Well, that isn’t much. No, but look at the percentage. Percentage in this day and age, shoot, I’ll take that trade. It is over 10 percent, 11-12 percent, and what if it goes to 80.00, which it could very well do as well.
This is my point, I am not saying that this has happened, you can’t go back and do anything about that. I am saying, watch this and see what does happen. Because if we start getting higher prices next week, we could see the market really start to move. Because I do believe that this 4,100.00 is the low for the year. It is just looking like that to me more and more.
You’ve got to say, alright, I think the low is in so now what are we going to do? So now you know.
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