Thursday, March 13, 2008

NASDAQ Update



I shorted the NASDAQ on March 3rd around the 43 area on the open. Today the Q's closed at 43.04 so I am about even on this trade so far. The reason I'm short is because of the symmetrical triangle formation and the trend of the market.

In the lower pane is a ratio line that shows the NASDAQ vs the S&P. As you can see since I put the trade on, the ratio line has been rising which indicates that the NASDAQ is stronger than the S&P. This is exactly what I do NOT want to see. That's not a good sign for my position so I've lowered my protective stop right above 44.00 to keep the risk very small. I'm also not too thrilled about today's bullish action but I'll just leave my stop where it is and let the market do what it's going to do.

No comments:

DISCLAIMER

This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Trading and investing involves high levels of risk. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
 
Google
Technorati Profile Finance Blogs - Blog Top Sites