iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
17,842 Blog Posts

Exodus Special: $QQQ Is Oversold

Our mean reversion algorithms are suggesting the Nasdaq is oversold here. The last signal was on Thursday, which resulted in an immediate bounce. Over a 10 day holding period, the track record for this signal is flawless.

Before heading out and buying FAANG stocks, consider the shallowness of this sell off. Our oversold signals are intuitive and adjust over time to conform with different markets. Today’s Nasdaq is nothing like what we saw in 2010. I can illustrate this for you with the next chart, which is the tech sector’s oscillator dating back to 2009. This is the overbought/oversold mechanism in a visual format.

As you can see, today’s oversold signal is very shallow and would never even be close to oversold just a few years ago. But this is the market we’re living in now. To act on this, your core thesis must be that status quo will remain intact and we’re heading back higher — as has been the case, almost uninterrupted, since November.

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6 comments

  1. dlrago8

    Can someone tell me TD Ameritradea symbol for E-Mini NAADAQ 100 please. /NQ not working. Thanks.

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  2. Goober

    Thanks Fly,

    I entered TNA 2019 LEAP’s around 25 delta on your last TNA oversold. It was a most excellent entry and a big position size for me. FAS as well when the big banks were oversold. July 14 100’s on TQQQ are probably going to be 80 cents in the morning if we don’t gap up. If I can get three contracts under 80 bucks a piece I’m game. The payoff on even a 3 pt move in NDX by next Friday would be over a thousand bucks.

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  3. roundwego

    Yah but did you back test to when the fed is selling.

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    • chuck bennett

      You have back problems home boy? How old of a man are you?

      Me likes real numbers.

      Regards

      Chuck Bennett

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