SteveTobin

Long NASDAQ

Long
OANDA:NAS100USD   US Nas 100
I have bought NASDAQ at 7127.
My trading plan is rule based and this trade meets all of the rules. NASDAQ has recently made a new high suggesting that the 2018 pullback is complete, the price has now pulled back in 3 clear waves giving the entry level of 7127, stochastics and RSI have reset to oversold so I am comfortable to take the position.

The other indices present a more mixed view, the DOW, SPX and many other indices have not managed to make a new high suggesting the 2018 correction is continuing and the DOW PUT IN 8 CONSECUTIVE LOSING TRADES before snapping the streak on Friday. On the other hand the FTSE , ASX and the RUSSELL have all confirmed new highs suggesting that the NASDAQ might be leading the way, the make up of the NASDAQ with all the big tech stocks would suggest that is a reasonable idea. I wanted to take the FTSE last week but that trade did not arrive.

The fundamental backdrop is a little difficult, to say the least. The trade war noise is gathering pace and a real possibility of a US EU trade war seems ever more likely, will it happen? we don't know but the market seems to think not, you would expect to see far more downside to these indices if the market really believed a full-scale trade war was likely, it seems hard to believe that a deal-making business orientated president would put jobs at risk with action but is easy to believe that he might use words to threaten action before doing a deal.

I am risking 2% of equity on this trade and hoping for a R:R of 3:1, indices are one of those assets where if you catch a trend you can do really well and as a result I am not setting a target yet but will be hoping for all time highs before closing.

My strategy is essentially to buy the dips in trending assets which often means I feel i am going against the market view, this is one of those trades.
Trade closed manually: Price action on market open made it clear this was a loser. Closed for a loss of 1%

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