NQ: What's a "Resistance?" 8/26/2020
NQ at the daily view.
A basic trading no-no is shorting a bubble. Bubbles can last longer and inflate larger than anyone's imagination. Calling a top is just purely gambling. A real trade is a calculated risk. Gambling is just ignoring all risk management and going based off emotion. Half of the battle in trading is risk management.
This morning, I read multiple posts from permabears shorting and re-shorting the NQ on the way up. Every single one of them was calling a top. What happened to them? It was like watching the Red Wedding from Game of Thrones.
The NQ can drop 1200 points and still be at an uptrend. The top of my channel didn't even stop the NQ. Though, I did project a VIX jump around August 26th. So, the NQ may pullback due to the VIX algorithms for all I know.
The amount of calls placed for tech stocks was insanely high today. So high that it broke the VXN's most recent wedge resistance.
How long can this last? Who knows. I don't know. I don't care to guess. I would rather wait for the NQ to pullback or correct first before diving in. Why? If I long now, I have no idea how much further it is. If I short now, I would very likely join the bear graveyard.
A basic trading no-no is shorting a bubble. Bubbles can last longer and inflate larger than anyone's imagination. Calling a top is just purely gambling. A real trade is a calculated risk. Gambling is just ignoring all risk management and going based off emotion. Half of the battle in trading is risk management.
This morning, I read multiple posts from permabears shorting and re-shorting the NQ on the way up. Every single one of them was calling a top. What happened to them? It was like watching the Red Wedding from Game of Thrones.
The NQ can drop 1200 points and still be at an uptrend. The top of my channel didn't even stop the NQ. Though, I did project a VIX jump around August 26th. So, the NQ may pullback due to the VIX algorithms for all I know.
The amount of calls placed for tech stocks was insanely high today. So high that it broke the VXN's most recent wedge resistance.
How long can this last? Who knows. I don't know. I don't care to guess. I would rather wait for the NQ to pullback or correct first before diving in. Why? If I long now, I have no idea how much further it is. If I short now, I would very likely join the bear graveyard.