The Nasdaq is down 500 and VIX is spiking. The allure of shorting into the hole is palatable, as it always is, thinking about the specter of this farce collapsing on the weight of its own hubris. Dreams aside, we must be analytical when approaching the asset markets, so let’s look.
We have a mean reversion oversold signal today with $QQQ, accompanied by strong backtest data over the past 6 mos. What this means for normies is whenever the $QQQ reached this weakness in the technicals, it bounced.
Here is the notable carnage the past two weeks.
The technicals for the NASDAQ is abysmal, with just one silver lining, providing you’re into gap fills.
It is not easy to just ignore the technical patterns and wait around for markets to bounce. We were all having such a gay olde time (PAUSE) just a fortnight ago and now the $SMG went from euphoria to bordering on panic, with the lauded index falling into a 15% crevasse, all but ruining people who chased the top.
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Bring it on, not because of my positioning which is always invested, but because it is beneficial and importantly, not boring. Could this be the turn? Give it a week.