Bulls managed on Wednesday to snap a three-day losing streak for the Nasdaq 100 if only barely, states Jon Markman, editor of Strategic Advantage.

The benchmark ended at 12,066, a gain of 0.1%. The win for the bulls is important. Sentiment has been shifting strongly in favor of bears.

Euphoria faded this week around artificial intelligence and better-than-expected financial reports from secondary semiconductor firms. For the first time since early January, bears seemed to be winning the sentiment war. That dynamic paused on Wednesday and may flip back in favor of bulls tomorrow.

Nvidia (NVDA) reported after the close that sales and net profits are tracked above forecast on more substantial orders for its AI chips. Executives also guided higher estimates for the current quarter. Shares soared 8% in after-hours trade. These corporate victories can reset sentiment in a material way.

The NDX has important support at 11,908, its 200-day moving average. There is resistance at 12,231. If bulls on Thursday can force a close above that level, I expect bears to cover short positions into the weekend.

The QQQ Loop: Members bought the ProShares Ultra QQQ (QLD) on February tenth at $43.67.

The two-times leveraged index fund closed Wednesday at $42.08, down 3.9% from the entry level.

  • Set up to sell half of the position at $49.30 lmt gtc, and a half at $58.20 lmt gtc.
  • Place a stop loss order at $41.10 stp.

If this trade works, the upside targets are +12.7% and +33%. The downside risk is -6.1%.

Learn more about Jon Markman here...