Score 7.6 (out of 10): NASDAQ poised to rally +3.7% rally in 1 month

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What’s Going On Here?

Traders continued to price in future pain as advertised by Fed Chair Powell last Friday. The major indexes extended losses as the Dow was off 0.96%, the S&P 500 dropped 1.10%, the Nasdaq Composite declined 1.12%.

Why Now?

NASDAQ has reached a new shorter-term low. Previously, during similar occasions, NASDAQ shares had a median return of +3.7%, over the following 1 month based on 10 historical occasions with 8 of those showing positive returns (80% hit ratio). This buy signal for NASDAQ received a high score of 7.6 (out of 10). This insight was generated on 2022-August-31 with last price of 59.53.

What’s This Token About?

NASDAQ is in the Finance- Other Services business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. Ticker symbol: NDAQ US.

What’s My Risk / Reward and Time Horizon?

We found 1 month to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 61.71 (+3.7%) has been reached. Based on NASDAQ’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 57.93 (last price at 59.53), which is equivalent to a -2.7% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

3.7% (February-2022), 3.6% (November-2021), 8.4% (September-2021), 11.6% (March-2021), -1.1% (September-2020), -7% (February-2020), 3.7% (October-2019), 3.6% (July-2019), 7.4% (May-2019), 3.8% (March-2019).

Historical Chart:

Summary:

NameNASDAQ
ViewUp
Star (1 to 10)7.6
Target3.7%
Time1 month
Hit Rate80%

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