ChuaChangYi

Long SQQQ - Overdone rally from earning catalyst

NASDAQ:SQQQ   ProShares UltraPro Short QQQ
Overall market rally seems way overdone and overhyped, although congress continue to press for stimulus bills on energy sector; still upside risk to reward does not warrant a long position at this point in time.

Rather, market's current rally are living on pro-longed extension from recovering CPI data to positive earning outlook to stock split. These catalyst seems to have very much been priced.

August has statistically been a poor performing month, and given the current environment from +5% rally in SPX, +7% in NDX, +4.35% in DJI since start of August has already been impressive.

I dont deny the fact that recent energy stimulus bill may continue to favor the sector and market while market expectation of peaked inflation is nearing, but I am expecting a healthy technical retracement across the market before the rally continues.
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