QQQ ETF: To the Moon or Dumpster Fire? Asmongold's Take!

All Time Highs? More Like All Time HYPE!

Alright chat listen up! We got news about the Invesco QQQ ETF which is basically a fancy way to bet on the Nasdaq 100. Apparently it's broken through to new all time highs! You know what that means right? Everyone's FOMO is kicking in! They're all gonna jump on the bandwagon like it's a Baldemort raid in Harry Potter.

Whipsaw What Now?

So these 'experts' are talking about 'renewed long term momentum' and a 'whipsaw in the monthly MACD'. Look I don't know about you guys but that sounds like some Elven magic to me. All I hear is that the QQQ has been outperforming the SPY thanks to those sweet sweet tech stocks. But before you go yoloing your life savings let's get a reality check.

Is This Thing Overcooked?

Now here's where it gets interesting. They're saying the QQQ is 'deeply overbought' and there's 'resistance intact from the 2021 peak'. Basically the market is screaming 'SELL!' like I scream at my monitor when I wipe on a raid boss. So what does that mean for you my beautiful bald headed viewers? A short term pullback might be coming like a swift kick to the nads of your portfolio.

DeMark Indicators? Sounds Like a Sith Lord...

Apparently these DeMark Indicators are flashing 'sell' signals for a bunch of S&P 500 tech stocks. These indicators support a two week correction for the tech sector and QQQ. This suggests there will be a short term moderation in outperformance from QQQ and large cap technology stocks. Translation? The tech bubble might be about to get pricked. Get ready for some pain baby!

Don't Be a Lemming!

Look chat I'm not saying the sky is falling. But breakouts are often followed by pullbacks like night follows day. So don't be a lemming and chase these steep rallies. Wait for the excesses to be absorbed like waiting for the perfect moment to snipe that last piece of gear on the auction house. Patience is a virtue especially when your bank account is on the line.

The Asmongold Strategy: Buy the Dip!

So what's the play? According to these guys a lower risk entry point would be closer to support potentially around $532. That's where June's gap would be filled. Basically buy the dip! But remember I'm just a guy with a webcam and a questionable hygiene routine. Do your own research and don't blame me if you end up living in a cardboard box.