Rules Over Hope $NVDA $AVGO Cut as $QQQ Weakens
Technical risk is rising across mega-cap tech as multiple Monthly BX signals flip dark red. While this doesn’t guarantee a crash, history suggests elevated odds of meaningful pullbacks or prolonged consolidation.
In this environment, capital preservation and disciplined rotation matter more than conviction or hope.
1. $Invesco QQQ(QQQ)$
QQQ just flashed a dark red, lower low on the Monthly BX. Historically, that usually means a 5%–10% correction before a real bounce. 🚨
No, I’m not shorting.
We’ll just rotate: weak tech falls off, stronger sectors (including DOW names) come in.
I’d rather miss an ugly bounce than ride a 10% burn.
2. $NVIDIA(NVDA)$
NVDA has a very real chance of a 20%–30% correction in the next 2–3 months.
Monthly BX just closed dark red for the first time since Feb 2025.
That setup has led to a deeper pullback about 80% of the time.
I hope I’m wrong. 💯
But rules > hope. I’m closing all bullish positions Monday.
3. $Broadcom(AVGO)$
AVGO just closed red on the Monthly BX.
Historically that has signaled either a ~20% drawdown or months of dead-money chop. I do not want capital tied up in either.
I am removing my bullish thesis and cutting positions on Monday.
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