Hey traders,
We’ve heard the fears from investors about an overextended AI sector …
Week after week, the market pushes higher. Mainly driven by AI investment or new tech-related business deals.
Look at a chart of the Invesco QQQ Trust (NASDAQ: QQQ) below. The strength is undeniable.
But today we’re experiencing a slight pullback.
Every candle represents one trading day:
There are rumblings that today’s pullback could be the beginning of a larger dip to correct the market.
Is it true? I don’t pretend to know the answer.
Every day there’s a new batch of investors and traders who are humbled by the market.
Instead of joining that group, I wait until the price action shows me what it wants to do.
The real question is: How do we trade a market that falls lower?
And for that, I do have an answer. One that might surprise you …
The Proshares Trust (NASDAQ: SQQQ) is an index that seeks the daily investment results three times the inverse to the Nasdaq-100 Index and QQQ.
In other words, when the QQQ goes down, the SQQQ goes up.
And during today’s market pullback, the SQQQ showed us a perfect intraday consolidation and breakout higher.
On the SQQQ chart below, every candle represents one trading minute:
During larger-market uncertainty, keep an eye on inverse index assets like the SQQQ.
These plays can follow my patterns perfectly, especially during times of maximum fear or greed.
Watch my video below for a full tutorial of my trade process.
This is how I make gains while the rest of the market is gripped by fear:
Cheers,
Tim Sykes
*Past performance does not indicate future results
