Nasdaq Flashes 3 Powerful Buy Signals: Your Ticket to Serious Profits

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Discover the three powerful buy signals flashing in the Nasdaq and learn how to profit from the surprising shift in market leadership. Veteran analyst Rick Pedicelli reveals the technical indicators and leading stocks that could supercharge your returns, and shares a game-changing insight into the rise of mid-cap growth names. Plus, get actionable takeaways to help you ride this new bull wave with confidence. Don’t miss this expert guide to navigating the latest market moves.

In this video, veteran analyst Rick Pedicelli reveals three bullish indicators in the Nasdaq that could supercharge your returns. Don’t miss his bonus tip on a key shift in market leadership.

Nasdaq Shifts from Sell to Buy: Here’s What You Need to Know

Hey there, MTG Tribe! Rick Pedicelli here with some breaking news on the Nasdaq. If you caught our recent video on the September 3rd sell signal, buckle up because the tables have turned dramatically. We’ve shifted back into buy mode, and the upside potential is massive.

Let’s dive into the three powerful buy signals the Nasdaq just flashed and what they mean for your trading playbook.

Buy Signal #1:Reclaiming the 20-Day EMA on High Volume

After slicing through the 20-day exponential moving average (EMA) in early September, the Nasdaq mounted a powerful 2% rally on the 11th, reclaiming both the 8-day and 20-day EMAs. What’s more, volume picked up significantly, marking a strong accumulation day.
For context, the 20-day EMA is a key technical indicator many traders watch. It’s essentially the average closing price over the past 20 trading days, but with more weight given to recent prices. When the index decisively moves above this level, especially on high volume, it’s often a bullish sign.

Buy Signal #2: Conquering the 50-Day MA

The very next session, the Nasdaq reclaimed another key level: the 50-day moving average (MA). This is huge. The 50-day MA is considered a longer-term trend indicator, so moving above it suggests the medium-term trend is turning bullish.
What’s more, the index held above the 20-day EMA, confirming that shorter-term trend was also in bull mode. With the 8-day, 20-day, and 50-day moving averages all toppled, the technical picture was looking very strong.

Buy Signal #3: Leading Stocks Confirm the Rally

Of course, you can’t just look at the index in isolation. To confirm a sustainable rally, we want to see leading stocks flexing their muscles too. And that’s exactly what happened.

Names like SE, APP, Dash, Tesla, and Netflix all powered higher, breaking out of bases, reclaiming key moving averages, and extending gains on strong volume. This broad strength across leaders from various sectors is a very bullish sign.

Remember, a rising tide may lift all boats, but leading stocks are the speedboats that surge ahead of the pack. When you see them racing higher together, it’s a strong signal that the broader uptrend has legs.

BONUS: The Game-Changing Shift in Market Leadership

While the technical picture in the Nasdaq is exciting on its own, there’s another key development you don’t want to miss: a major shift in market leadership.

For most of the year, mega-cap tech names like the “Magnificent Seven” have dominated. But now, mid-cap growth stocks are taking the reins. Just look at the iShares Russell Midcap Growth ETF (IWP), which is breaking out to new highs as the Nasdaq 100 (QQQ) struggles below its August peak.

This is a game-changer if you love trading growth stocks. Mid-caps, which we define as stocks trading between 750k to a few million shares per day, are liquid enough to trade but small enough to deliver outsized moves.

In other words, this new leadership shift opens up a whole new universe of opportunities beyond the mega-cap giants. And that’s great news for active traders.

Key Takeaways: Your Action Plan

Alright, let’s boil this down. Here are your key takeaways and action items:

1.The Nasdaq has flashed three powerful buy signals:

  • Reclaiming the 20-day EMA on high volume
  • Conquering the 50-day MA
  • Leading stocks confirming the rally
  1. Mid-cap growth stocks are taking over leadership from mega-caps. Adjust your watchlist accordingly and look for opportunities in this space.
  2. When the index and leading stocks flash buy signals in tandem, it’s time to put money to work. Look for stocks breaking out of bases or rebounding off key support levels on strong volume.
  3. Manage your positions actively. Ride winners to maximizes gains but cut losers quickly to protect capital. Remember, not every buy signal will lead to a sustained uptrend.
  4. Stay adaptive and open-minded. Markets evolve, leadership rotates, and your strategy needs to evolve too. Continually reassess the technical picture and weight of the evidence.

The Bottom Line

The Nasdaq’s powerful shift back into buy mode, confirmed by leading stocks and a rotation into mid-cap names, opens up a world of opportunities for astute traders. But it’s up to you to act on these signals.

Study the charts, refine your process, and never stop learning. With the right technical toolkit and mindset, you’ll be ready to pounce when the next big signal flashes.

Speaking of which, have you spotted any other confirming signals or interesting setups? Share your insights in the comments below. Let’s learn and profit together.

Stay tuned for more market insights and happy trading!

For more details, watch the video!

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Deron Wagner

Deron Wagner is a professional trader, author of several ETF trading books, and the Founder of Morpheus Trading Group. Since 2002, he has been sharing his proven swing trading strategy with thousands of traders around the world. He has appeared on CNBC, ABC, and Yahoo! Finance Vision television networks, and is a frequent guest speaker at various global investing conferences.

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