TQQQ: Near-Term Bottom In Position - Strong Potential Upside

Summary

  • The TQQQ fell more than 70% from its November highs to its May lows. However, our price action analysis suggests a near-term bottom with a validated bear trap reversal signal.
  • TQQQ can potentially help investors beat the NASDAQ in a secular uptrend. However, a prolonged bear market can significantly impact its risk-adjusted performance.
  • We rate TQQQ a Buy. However, we urge investors to use a stop-loss risk management strategy due to the lack of a double bottom bear trap reversal signal.
  • Our near-term price target of $40 implies a potential upside of 24.5%. Our medium-term price target of $60 indicates a potential upside of 86%.
  • I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
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Investment Thesis

ProShares UltraPro QQQ ETF (NASDAQ:TQQQ) is a proven leveraged ETF that can help investors potentially beat the NASDAQ (NDX) over time. It's firmly grounded in fundamentally-sound companies based on underlying holdings in the NDX, as opposed to

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This article was written by

42.05K Followers

JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks.

He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing.

He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.

He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out.

The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of AAPL, AMZN, ARKK, GOOGL, MSFT, TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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