NASDAQ Flashes a Sell Signal, But Don’t Short It
Yesterday’s Descending Triangle breakdown is now confirmed, NASDAQ has penetrated its range baseline, which textbook theory reads as a straight sell signal. Today’s report flips that instinct on its head.
The real driver is Korea’s 2x leveraged ETFs on Samsung and SK Hynix, which double gains on the way up and double losses on the way down, a mechanic most retail buyers ignore until it turns against them. KOSPI just triggered circuit breakers two days running, and a new scare, China’s CXMT climbing to the 24th most valuable Chinese company, added fuel, though the report notes CXMT’s DUV chips still cannot touch the EUV-based memory Samsung, SK Hynix, and MU actually sell.
Here is the report’s real point: even with a confirmed sell signal, retail investors should not short it. Buying up caps your loss at zero with unlimited upside; shorting caps your gain at zero with unlimited downside, which is why shorting belongs to institutions, not individuals. Instead the report hands out levels, NVDA buyable now, META at $520, MSFT under $430, SPCX at $120 and $100, AMD before MACD turns positive, and TSM still holding its clean 45 degree uptrend.
Underneath, PCE cooling from 4.1% to 3.7% gives the market room to breathe, but Q2 GDP printed just 1.5%, below forecast, and Meta’s costs jumped 55% even as revenue grew, a reminder that inflation relief does not erase strain underneath.
The chart says sell. The report says buy the dip instead, and hands you the price to do it at.
Full report available via the download button below. Read previous US Stock Express editions here.
US Stock Express 20260731 Risk control EF NVDA META MSFT SPCX PEP
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.