NQ at the daily.
Well, what did anyone expect? My original channel top was that dotted red line. NQ broke the top of that channel. Usually, when the top of the channel breaks, that's not bullish at all. The price usually gets punished by being hammered down.
This shouldn't be a surprise at all. What's annoying is seeing permabears being very, very petty and try to gloat at everyone. It's quite sad actually. I know some of them shorted the NQ since the 9000s. Being petty like that doesn't get your money back. When I see permabulls or permabears do that, it tells me that they lack any control over their emotions. It tells me that they lack any maturity. They should not be trading at all because of that lack of control.
There were multiple signs of a correction. Bearish divergence at the NAAD, bullish divergence at the dollar strength, VXN was making 3-4 higher lows, and liquidity was decreasing. How far will NQ's correction will go? I wouldn't be surprised to see the upper 9000s again. Will the Federal Reserve save it? Why? NQ was already way above its previous all-time high. There really is no need for them to do anything for now. Would institutions buy this dip? Why? I personally wouldn't buy it at these prices if my intent is to hold it for more then 24 hours.
The VXN is preparing another spike. Usually, there is a subsequent spike in the volatility indices. Usually it happens 5-7 trading days after the first spike. So, next week should have another selloff.
That said, if the NQ does sell off again, be careful of short covering rallies. How many bears have trapped shorts below? Well, probably just as many as trapped bulls who bought near the top.
Disclaimer: These charts are for my trading team. I am not doing this for reputation points nor do I really care about them.
Well, what did anyone expect? My original channel top was that dotted red line. NQ broke the top of that channel. Usually, when the top of the channel breaks, that's not bullish at all. The price usually gets punished by being hammered down.
This shouldn't be a surprise at all. What's annoying is seeing permabears being very, very petty and try to gloat at everyone. It's quite sad actually. I know some of them shorted the NQ since the 9000s. Being petty like that doesn't get your money back. When I see permabulls or permabears do that, it tells me that they lack any control over their emotions. It tells me that they lack any maturity. They should not be trading at all because of that lack of control.
There were multiple signs of a correction. Bearish divergence at the NAAD, bullish divergence at the dollar strength, VXN was making 3-4 higher lows, and liquidity was decreasing. How far will NQ's correction will go? I wouldn't be surprised to see the upper 9000s again. Will the Federal Reserve save it? Why? NQ was already way above its previous all-time high. There really is no need for them to do anything for now. Would institutions buy this dip? Why? I personally wouldn't buy it at these prices if my intent is to hold it for more then 24 hours.
The VXN is preparing another spike. Usually, there is a subsequent spike in the volatility indices. Usually it happens 5-7 trading days after the first spike. So, next week should have another selloff.
That said, if the NQ does sell off again, be careful of short covering rallies. How many bears have trapped shorts below? Well, probably just as many as trapped bulls who bought near the top.
Disclaimer: These charts are for my trading team. I am not doing this for reputation points nor do I really care about them.