We have a tiny uptick on the QQQ3 Coppock indicator from minus 234 to minus 232 or something of that order but that is a clear and unmistakable buy signal. This is on a chart. On my table the buy signal is stronger and came in February and on current numbers we can expect the Coppock to climb strongly for the rest of 2023.
We also have a change from red to green on this very long term chart and a significant base pattern building on the monthly chart with a golden cross buy signal.
I have also been reading that ETFs are experiencing substantial fund outflows with the giant SPDR S&P 500 ETF seeing an outflow of over $10bn in 2023. Sentiment is clearly depressed which is what you would expect if the stock market is at an important low point.
On my system QQQ3 is a buy. I guess it is not written in stone but if we don’t act on it what are we waiting for. It is the only leveraged ETF that UK investors can buy because of the regulations and it does offer dramatic leverage. During 2022, peak to trough, QQQ, an ETF which tracks the Nasdaq 100, fell by 37.4pc whereas QQQ3 fell by 82.5pc.
Strategy
We may also look back on a bank having to be rescued as the sort of thing that happens in or around the bottom of a bear market. Remember that QQQ3 does not just come with 3x leverage but this effect is greatly exaggerated by the daily rebalancing which is why between December 2012 and November 2021 this ETF rose a staggering 92 times.
Previous Coppock buy signals have proved excellent times to buy.
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