How to use VOLQ to profit from NASDAQ

10 paź 2020This is how I have used the Nasdaq 100 Volatility Index in addition to my arsenal of confluences to determine where the NASDAQ is going. Here you will find that the VOLQ moves in the opposite direction near 80% of the time. The section I have marked using the red vertical lines, show the 20% of-the-time playing out. Within that period, the VOLQ and NASDAQ moved in conjunction with each other. Based on the experience of Luke Rahbari, the CEO of Investment Advisor Representative, with Volatility and Index markets, is that this indicates potential downward movement for the index.

This may be the case as soon as the NASDAQ reaches Septembers high of 12466.6 - this being the highest price ever recorded on NASDAQ - so I'll be looking out for bearish movement during that time. Only temporarily however, and not for signals to sell as we are still in a bullish market overall.

Notice if you add up the percentage weights of the top stocks in the NDX: MSFT, AMZN, AAPL, FB, GOOG (class A & C), they make up 44% of the index. Technology companies make up 55% of the total weight of the NDX and Consumer Services is another 25%.