{"id":12896,"date":"2022-07-18T12:52:00","date_gmt":"2022-07-18T16:52:00","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=12896"},"modified":"2022-07-21T11:32:18","modified_gmt":"2022-07-21T15:32:18","slug":"nasdaq-buy-signal","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/nasdaq-buy-signal\/","title":{"rendered":"Nasdaq Flashes a Stealth Buy Signal: What&#8217;s Next?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/Nasdaq-buy-signal.jpeg\" alt=\"Nasdaq buy signal\" width=\"711\" height=\"474\" title=\"\"><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/nasdaq-buy-signal\/#The_Nasdaq_has_just_flashed_a_key_signal_that_points_to_a_bullish_change_of_market_character_Here_we_briefly_share_our_analysis_on_the_Nasdaq_chart_and_a_top_relative_strength_sector_to_buy\" >The Nasdaq has just flashed a key signal that points to a bullish change of market character. Here, we briefly share our analysis on the Nasdaq chart, and a top relative strength sector to buy.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/nasdaq-buy-signal\/#Has_the_Nasdaq_bottomed_out\" >Has the Nasdaq bottomed out?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/nasdaq-buy-signal\/#Emerging_leadership_in_the_Healthcare_sector\" >Emerging leadership in the Healthcare sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/nasdaq-buy-signal\/#Lantheus_Holdings_LNTH_Buying_a_leading_stock_in_top_relative_strength_sector\" >Lantheus Holdings ($LNTH): Buying a leading stock in top relative strength sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/morpheustrading.com\/blog\/nasdaq-buy-signal\/#Morpheus_Market_Minutes_Your_free_daily_market_analysis_and_top_swing_trade_ideas\" >Morpheus Market Minutes: Your free daily market analysis and top swing trade ideas<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Nasdaq_has_just_flashed_a_key_signal_that_points_to_a_bullish_change_of_market_character_Here_we_briefly_share_our_analysis_on_the_Nasdaq_chart_and_a_top_relative_strength_sector_to_buy\"><\/span>The Nasdaq has just flashed a key signal that points to a bullish change of market character. Here, we briefly share our analysis on the Nasdaq chart, and a top relative strength sector to buy.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After a rough start to the first half of 2022, stock market conditions are improving so far in Q3. <\/p>\n\n\n\n<p>For starters, the Nasdaq is now trading above its 20-day exponential moving average.<\/p>\n\n\n\n<p>As explained in <em><a href=\"https:\/\/new.morpheustrading.com\/blog\/20-ema-market-timing\/\" target=\"_blank\" rel=\"noreferrer noopener\">How to Know When it\u2019s Time to Start Buying Stocks Again<\/a><\/em>, a move above the 20-day EMA is a reliable signal to know when an index may have bottomed.<\/p>\n\n\n\n<p>However, the Nasdaq&#8217;s<strong> bullish price action of July 13 and 14 is what <em>really<\/em> caught our attention!<\/strong><\/p>\n\n\n\n<p>On both days, the Nasdaq Composite gapped sharply lower on the open, but reversed to close near the intraday high.<\/p>\n\n\n\n<p>In the process, the Nasdaq successfully defended the higher low that formed around 11,000 several weeks ago:<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><a href=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220716COMP.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220716COMP.png\" alt=\"$Nasdaq Composite\" width=\"717\" height=\"527\" title=\"\"><\/a><figcaption><em>Press chart to enable zoom<\/em><\/figcaption><\/figure>\n\n\n\n<p>The price action of July 13 and 14 was important, as the Nadsaq could have easily gapped down and rolled over&#8211;<em>but it did not!<\/em><\/p>\n\n\n\n<p>This indicates a <em>definitive change of character in the stock market<\/em> (at least in the short to intermediate-term).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Has_the_Nasdaq_bottomed_out\"><\/span>Has the Nasdaq bottomed out?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Technical market conditions are clearly improving in the short to intermediate-term, but it&#8217;s impossible to predict if a longer-term bottom has formed.<\/p>\n\n\n\n<p>Further, our proven swing trading strategy is designed to <em>react to, NOT predict <\/em>market trends. <\/p>\n\n\n\n<p>That&#8217;s why the analysis in our <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">swing trading report<\/a> is just <em>one day at a time.<\/em><\/p>\n\n\n\n<p>Although market conditions are improving, the Nasdaq still has quite a bit of work ahead.<\/p>\n\n\n\n<p>The Nasdaq must first prove it can hold above its newly reclaimed 50-day MA.<\/p>\n\n\n\n<p>Next, the tech-heavy index must overcome resistance of its prior swing high (11,800 area).<\/p>\n\n\n\n<p>If it fails to do so, then we could be in for more choppy price action within the month-long base of consolidation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Emerging_leadership_in_the_Healthcare_sector\"><\/span>Emerging leadership in the Healthcare sector<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If the stock market is headed higher, it&#8217;s important to focus on top relative strength sectors and emerging leadership.<\/p>\n\n\n\n<p>The Healthcare sector has started showing new leadership, with <a href=\"https:\/\/www.ssga.com\/us\/en\/intermediary\/etfs\/funds\/spdr-sp-biotech-etf-xbi\" target=\"_blank\" rel=\"noreferrer noopener\">S&amp;P Biotech ETF ($XBI)<\/a> setting higher highs and higher lows <em>above<\/em> its 50-day MA.<\/p>\n\n\n\n<p>$XBI is clearly showing relative strength, as the Nasdaq and S&amp;P 500 have not yet set higher highs.<\/p>\n\n\n\n<p>The S&amp;P 500 is still below its 50-day MA as well.<\/p>\n\n\n\n<p>Below, notice that $XBI is now trading in a tight range after a strong thrust up:<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><a href=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220716XBI.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220716XBI.png\" alt=\"$XBI \" width=\"717\" height=\"527\" title=\"\"><\/a><figcaption><em>Press chart to enable zoom<\/em><\/figcaption><\/figure>\n\n\n\n<p>Above, note the relative strength line (RS line) vs the S&amp;P 500 has already broken out to new highs ahead of price.<\/p>\n\n\n\n<p>Along with pattern relative strength, the RS line is a quick and easy way to help spot the strongest stocks in the market (<a href=\"https:\/\/new.morpheustrading.com\/blog\/relative-strength\/\" target=\"_blank\" rel=\"noreferrer noopener\">learn more<\/a> about relative strength trading).<\/p>\n\n\n\n<p>After spotting relative strength in Healthcare, we began scanning for the best stocks to buy in the sector.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lantheus_Holdings_LNTH_Buying_a_leading_stock_in_top_relative_strength_sector\"><\/span><a id=\"LNTH\"><\/a>Lantheus Holdings ($LNTH): Buying a leading stock in top relative strength sector<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In our nightly newsletter, <em><strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">The Wagner Daily<\/a><\/strong><\/em>, we are already long medical products stock Lantheus Holdings ($LNTH).<\/p>\n\n\n\n<p>$LNTH has been trading in a fairly tight range over the past few weeks, and is <strong>one of the few stocks that remained in an uptrend <\/strong>through the first half of 2022.<\/p>\n\n\n\n<p>We initially bought $LNTH after it pulled back to 50-day MA support on July 11.<\/p>\n\n\n\n<p>The buy entry was based on the big volume breakout above the 50-day MA on July 8.<\/p>\n\n\n\n<p>We then added to the position on July 14, as $LNTH pushed through the $68 pivot area:<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><a href=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220716LNTH.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220716LNTH.png\" alt=\"$LNTH daily\" width=\"717\" height=\"527\" title=\"\"><\/a><figcaption><em>Press chart to enable zoom<\/em><\/figcaption><\/figure>\n\n\n\n<p>As of the July 20 close, <strong>$LNTH is showing a gain of +17%<\/strong> since our portfolio buy entry.<\/p>\n\n\n\n<p>In addition to $LNTH (already long), United Therapeutics (<strong>$UTHR<\/strong>) and ShockWave Medical (<strong>$SWAV<\/strong>) are both listed in the Watchlist section of today&#8217;s <strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Wagner Daily<\/em><\/a><\/strong>.<\/p>\n\n\n\n<p>Paid Morpheus subscribers should note our exact buy trigger and stop prices in the <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">report<\/a>.<\/p>\n\n\n\n<p>We stayed out of harm&#8217;s way by remaining mostly in cash throughout the major weakness of the first half of 2022.<\/p>\n\n\n\n<p>Now, as long as market conditions continue improving, we will gradually increase portfolio risk exposure by focusing on low-risk buy entries in top relative strength stocks and ETFs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Morpheus_Market_Minutes_Your_free_daily_market_analysis_and_top_swing_trade_ideas\"><\/span><em>Morpheus Market Minutes:<\/em> Your free daily market analysis and top swing trade ideas<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>We recently launched a<strong> FREE new service<\/strong> that provides you with a snippet of powerful, timely market analysis and top swing trade picks on our Watchlist.<\/p>\n\n\n\n<p>Just press <a href=\"https:\/\/4966a6ff.sibforms.com\/serve\/MUIEADK82b8TMyFqTxWMxoOresxe5KKgeYdQbAXrw8CMCqKgCSZR1H4hKCFkWIjN69d7pTSIg9YVEWE97dfeWpP4cmxMb5J268rFVOaUPbCifmmR2nB2U_C4p08hYLxBwP9U5FMLWVKWAL8-xiBtNjX2O8x43ksv45N0RObCZDoTzEgEHmLPCK2e5oXi63MmsGU-sowrNJfP_wN-\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>HERE<\/strong><\/a> and drop your e-mail address on the form to start profiting from your free daily <em>Morpheus Market Minutes<\/em> updates.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Nasdaq has just flashed a stealth signal that points to a bullish change of market character. <\/p>\n<p>Here, we briefly share our analysis on the Nasdaq chart, and a top relative strength sector to buy.<\/p>\n","protected":false},"author":1,"featured_media":12908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[5],"tags":[],"class_list":["post-12896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-picks-analysis"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/12896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=12896"}],"version-history":[{"count":15,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/12896\/revisions"}],"predecessor-version":[{"id":12942,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/12896\/revisions\/12942"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media\/12908"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=12896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=12896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=12896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}