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QQQ3 primed for a buy signal

February 7, 2023

QQQ3. Buy @ $74.53 (or at best)

I just tried to buy SPXL and my order was rejected so that’s it for SOXL, SPXL and TECL because of some ridiculous European regulation called KID. How I hate Brussels. May they rot in hell. What was Brexit all about if we cannot tell these w*****s where to go. KID is a joke dreamed up by people who have never bought a leveraged ETF in their lives and enjoy massive pensions paid for by us.

It is not a complete disaster. It just means that for the moment it is all about QQQ3 which is a pretty cool stock, better than SPXL actually. Tomorrow I am going to buy some more of them. Fortunately I already have some SOXL and TECL bought a couple of weeks ago when, for some reason, IG was not implementing KID. Financial regulation is a joke as we found in 2008-09 when the most heavily regulated sector in business history, banks including German and Swiss banks, went bankrupt in droves and were only saving from launching a depression because unregulated consumers carried on spending.

As my cousin said, hairdressers are not regulated and do they threaten to bring down the economy or cause any problems at all – no; and I think he is right; that is not a coincidence. The great and the good are actually a bunch of morons and everything would go better if they would keep their noses out of everybody else’s business, especially mine.

I believe Jeremy Clarkson feels the same and he is a very wise man, much wiser than the bien pensants at the BBC or the Duchess of Sussex for that matter.

Coppock buy signal for QQQ3 is a near certainty for February

If we look on the chart above we can see that buying QQQ3 when Coppock gave a buy signal, the vertical purple lines, has been rewarding in the past. I see no reason why it should be different this time so I am going to buy and probably keep buying.

This is another chart of QQQ3 but with each candlestick representing six months. It shows that we have had a sustained uptrend since the fund was launched in December 2012 with two tight consolidations followed by a sharp correction. My suspicion is that the correction is complete and it is off to the races again which is why I am a buyer.

Strategy

Financial advisers are preoccupied with safety. This is a misguided approach which leads to bad investments. Much better is to accept risk and really go for it. I do this all the time and if anything the older I become the less risk averse I become. When I buy shares I want high risk, high reward but I also want to make sure that I win.

Who would you rather be driven by, some old dodderer pootling along a country road at 20mph and veering all over the road or Lewis Hamilton in a Formula One car at 200mph plus. I would choose the latter every time even though it would no doubt be a terrifying ride. He knows how to stay alive.

It is the same with the stock market. I invest at Formula One pace as it were but this makes me very alert indeed to what is happening and also very conscious of my rules and the need to stick to them if I am to survive and prosper.

It is also common sense. If I told you that the Nasdaq 100 was going to double in the next three years, I have no idea if it will but it easily could, which would you rather have, shares in Barclays (yawn!) or shares in QQQ3. The answer is surely a no-brainer. And even better is that this time around I think I will have a good idea of when you and I should sell.

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