What's next?

In the chart of the QQQ ETF, which follows the Nasdaq trend, the multiple downward breaks of the 10-day moving average (blue curve and red arrows) have always signaled the final phase of an index correction. Note also the extreme oversold MACD (red circle). Tomorrow we will publish in the free newsletter some arguments in favor of a possible Nasdaq recovery.

The similarity between cryptos and the Nasdaq (tech stocks in particular) continues. Yesterday we saw signs of extreme oversold in the Nasdaq. Today I point out this low point reached by the "fear index" in cryptocurrencies. At the beginning of January, the investor "sentiment" index fell to 10 (extreme distrust or "fear"), climbing back up just around 20 in the last few days.

From a historical perspective, the distrust values reached in January are similar to those reached last July (blue line).
At that time, that low point anticipated a rally in which BTC doubled in price the following month.

Rereading the posts published since January 11 and putting the dots together, we can assume that there could be a short-term rally in the most volatile assets, such as Nasdaq stocks and cryptos. However, we must keep in mind the seasonality chart, where January and February are not so performing, while April is the best performing month of all.

Traders who are used to making short-term trades can take advantage of the uptrend we have been talking about.
While medium-term traders could take advantage of April's uptrend by spending the next few months introducing new stocks into their portfolios, taking advantage of the upcoming declines, especially after February 11.

Thanks for reading.

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