trading
Tuesday, 23 March 2021
Monday, 22 March 2021
Bullish seasonality for Nasdaq starting this week.
Early on in this morning's session we have a QQQ bounce coinciding with bullish seasonality but especially in conjunction with rates on the 10-Year Note relaxing. While the inverse correlation between rates and the Nasdaq may very well be overhyped (for now), it is also worth nothing that the trade may be a self-fulfilling prophecy at this point given how many eyes are watching the dynamic between the two markets.
As a result, some of the best movers so far are in the Nasdaq. TSLA and SPLK are just two examples. And some beaten-down former monsters like OKTA and ZM are developing near-term potential double-bottoms on their daily charts.
Friday, 12 March 2021
In summary, the show goes on, this market clearly still belongs to the bulls, and the only confirmation left is a close above 3950 to set off the next leg higher. Since the SP-500 chart is the most important indicator, if it closes above 3950, it's an all-clear for the bulls. If that happens, SP-500 would have to fall back well into the previous trading range to cancel out that bullish signal.
Tuesday, 9 March 2021
# 4 Always Be Alert
Saturday, 6 March 2021
'We've shifted to a market that's being driven by liquidity and emotion instead of valuation. Once the market drops valuation as a benchmark, it has lost its rudder.'
In summary, it seems likely that support at 3700 and perhaps 3630 will be tested. As long as those hold, one could argue that SP-500 is trading in a very volatile manner within a relatively wide trading range. Resistance at 3930 and support at 3700 to be watched closely. There are signals on both sides and some oversold conditions are building. A breakout of that range in either direction should be significant and would have some serious follow-through.