A truly difficult context for American Tech. The Nasdaq 100 has dropped by more than 10% since the beginning of the year, in the wake of the increasingly hawkish declarations of the Fed. The American Central Bank is now solely focused on fighting inflation and this translates into an end of QE and a rise in rates. The market already discounts 5 in the year. A more difficult scenario for American techs. The next key event is US inflation on Thursday the 10th of February. In the short term, you can try both long and short strategies on breaking some precise levels.
There are certainly several ways to invest in US tech. In this column, we offer you a graphical analysis on the Invesco QQQ Trust fund and, as a tool to ride the megatrend, the Leverage Share ETPs with which it is possible to leverage both long and short. From a technical point of view, the short and medium-term uncertainty on the index is growing, so targeted short-term operations are recommended. In this, leveraged products can help us and make a difference. There are two strategies that we can implement. Either a SHORT on daily closing below $340, with a target of $320 and stop loss at $347, or LONG on closing above $380 with target $400 and stop loss at $370. In any case, it will probably be the US inflation figure of Thursday the 10th of February that will restore direction to the technological index.
LONG Strategy on US tech by buying the Leverage Shares 5X Tech 100 ETP (ISIN: XS2399364152) or SHORT by buying the Leverage Shares -3X Tech 100 ETP (ISIN: XS2399364319).
