NQ at the 4 hour view.
The NQ has reached a top since July 13th. July 13th is a key reversal day. It is THE top? I don't know. However, this will likely be the top for the rest of the summer.
Institutions are taking advantage of the tech hype and selling tech shares - while new traders and Robinhooders chase the tech hype. Robinhooders got the alert to go long on tech. Institutions get that same alert too.
Am I going to judge them? No, because I use the same strategy too. What is saving the NQ at this point is high liquidity in the markets and A LOT of trapped bears waiting to cover their shorts below.
We got 4 big tech companies from FATMANG (Facebook, Amazon, etc) reporting next week. I'm totally expecting a hype rally for pre-earnings. Now comes the question that I've been asking. What will happen to tech stocks if the expectation was very, very high? Sure, Microsoft and Tesla beat earnings, but the expectation was lowered. So, we have a Catch-22. The official expectations were lowered, but retail traders' expectations are much higher.
What do you think will happen? I'm going right back to cash before any one of them reports their earnings.
The NQ has reached a top since July 13th. July 13th is a key reversal day. It is THE top? I don't know. However, this will likely be the top for the rest of the summer.
Institutions are taking advantage of the tech hype and selling tech shares - while new traders and Robinhooders chase the tech hype. Robinhooders got the alert to go long on tech. Institutions get that same alert too.
Am I going to judge them? No, because I use the same strategy too. What is saving the NQ at this point is high liquidity in the markets and A LOT of trapped bears waiting to cover their shorts below.
We got 4 big tech companies from FATMANG (Facebook, Amazon, etc) reporting next week. I'm totally expecting a hype rally for pre-earnings. Now comes the question that I've been asking. What will happen to tech stocks if the expectation was very, very high? Sure, Microsoft and Tesla beat earnings, but the expectation was lowered. So, we have a Catch-22. The official expectations were lowered, but retail traders' expectations are much higher.
What do you think will happen? I'm going right back to cash before any one of them reports their earnings.