Tqqq alternative
This can lead to a short-term bottom Bounce to run up 25 tqqq alternative resistance before possible correction to the lower 20 bounce to a catbounce drop possibility to the 13 range. No in between. We are at the end of an Elliott wave. This will be a dating for older adults point keep on the lookout for wave 1 of the next cycle. Things are telling me, recession is canceled until next year so wave 1 might be upward. Lets go baby, we are at the bottom, making new lows!
Should the TQQQ also be avoided? Convexity and volatility will introduce tracking error for holding periods longer than 1 day. Some nimble traders may look to swing trade-levered long ETFs, as their potential returns are magnified by their positive convexity, although this alterbative recommended for beginners. The fund achieves this levered return by https://bergtaucher.de/tools/datecheck.php the stocks underlying the Nasdaq Index and entering into total return swaps with the large investment banks that are reset nightly Figure 1. When we start to look beyond the 1-day horizon, volatility and convexity tqqq alternative start to introduce tracking error.
For those who are still wondering about the reason for the fall of the mighty Nasdaq Composite Index, the chart below says it all. Tqqq alternative back in hindsight, the volatility was already evident from the second half ofas a result of QQQ in blue being inversely correlated to the year rates in Orange. Now, tech did stage a rebound on Wednesday tqqq alternative QQQ up subscriptions my app nearly 2. There is also an indication that inflation risks are still present, as the U. Now, inflation, especially high-inflation with the U. CPI Consumer price index at record highs is an issue for the whole economy, but more for tech stocks which normally exhibit higher growth but carry higher valuations as well. Thus, they are dating testing golf ball hose to deliver faster profit growth in the future to justify their high price to earnings multiples.
TQQQ Positive convexity in downtrends Seeking Alpha The challenge, of course, is to figure out when to take profits on swing trades, as the position size can grow very quickly on levered ETFs and if profits are not taken along the way, they can disappear quickly on pullbacks because the drawdowns are magnified.
This article was written by. Macrotips Trading. I write articles as part of my own due diligence on the stocks that I find interesting, for one reason or another. Follow me on twitter for my thoughts on macro trends. Recommended For You. Comments 10 Newest. Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. No in between. We are at the end of an Elliott wave. This will be a turning point keep on the lookout for wave 1 of the next cycle. Things are telling me, recession is canceled until next year so wave 1 might be upward.
Lets go baby, we are at the bottom, making new lows! Only way to go from here is I trade this stock with a very small percentage of my money, I am not dumb. There is a ton of controversy on this stock, in my opinion it should only be day traded, not long term due to volatility decay.
Since there is so much Well, some would call me crazy. Now, in my opinion, we are in the middle of a Bear Market. My expectation is that this Bear Market will last till December 22 until June After that the next Bull market should start. My expectation for the Nasdaq The intermediate uptrend represented by the blue trend line was broken and retested and we are now trading just above the neckline.
First target would be below 22 with further downside possible. I 've kept the investment strategy as neutral because I We have a nice pitchfork setup going on. Should see a momentum swing up from here.
Profit taking is different for both but exit signals and stops are same. I am only going to post the Swing details here as to not overcomplicate Furthermore, far from forming part of a buy-and-hold investment strategy, these two leveraged ETFs are instruments best used over intraday time frames, and those betting on them should monitor news and economic indicators likely to sway the market.
Source: Ycharts. However, as a leveraged fund, QLD is also impacted by compounding and is better traded on a short-term one-month maximum with constant monitoring of daily performance. This is more of a long term buy-and-hold investment vehicle as it is designed to provide protection in periods when the NASDAQ falls. Thus, while QQQ fell by Finally, these four ETFs could form part of an equity portfolio strategy where the aim is to provide some hedging protection while investors continue to be invested in tech or already own shares of QQQ.
In this respect, one strategy which worked well in the last twenty months consisting of dip-buying is no longer working in this new market regime.
Thus, instead of buying the dip in the hope of an elusive upside, it would be better to seek alternative strategies in view of the year yields not having gone down yet and QQQ having dipped below its day moving average last week.
Disclosure: This is an investment thesis and is intended for informational purposes. Investors are kindly requested to do additional research before investing. By : Chetan Woodun. These four ETFs could form part of an equity portfolio strategy where the aim is to provide some hedging protection while investors continue to be invested in tech or already own shares of QQQ. Mentioned in Article.