tsla

The Nasdaq Signal Calling for New Highs

The latest COMP signal has been very bullish for stocks in the past

Jul 28, 2017 at 2:59 PM
facebook X logo linkedin


On Thursday, the Nasdaq Composite (COMP) roared to record highs on the back of an impressive morning rally from Facebook stock following the social media company's better-than-expected earnings. However, as the day wore on, those gains evaporated, with the tech-heavy COMP ending the day with a loss. Interestingly, the index had an intraday high of 6,460.84 and low of 6,318.62 -- a 2.251% difference -- but closed just 0.6% lower. We decided to look at what this price action could mean for stocks going forward. 

Specifically, Schaeffer's Senior Quantitative Analyst Rocky White looked at all Nasdaq returns following a session with a swing of 2.251% or more, but also where the index closed less than 1% lower. White's research found 25 similar occurrences since 2010, the first full year of the current bull market, and while the day immediately after such a session often ends poorly -- echoed in today's market weakness -- the following weeks look quite sunny for stocks. 

nasdaq signals

As you can see, from one week to one month after a signal, the Nasdaq tends to outperform its anytime returns. In fact, the COMP's one-month return after a signal more than doubles its anytime return for the same time period. Standard deviation is also much higher across the board, suggesting volatility could be elevated in the coming weeks. 

Looking back, this is the first such signal of 2017, with the last one coming in November 2016 -- just after the U.S. presidential election. In the table below that lists the previous 25 signals, you can see how bullish recent Nasdaq signals have been. Even if you do believe it's a good time to buy stocks, make sure to check out best stocks and worst stocks in August. 

stocks data

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.