NASDAQ Setting Up For A Potential Short Trade
If you read my last post you would know that I'm looking for a place to short this market. I tried entering a short position last week but that turned out to be a losing trade for me as the market continued to move higher.
If your look at the above chart of the NASDAQ, you will notice that the market had a doji yesterday right at the 50 day moving average which is a warning sign that the recent rally may be about over. Today the NASDAQ formed a bearish engulfment pattern which is further evidence that the market may be ready for a move down.
On Tuesday, if I see today's low (Monday's low) taken out, I will look to short the NASDAQ with a protective stop right above Monday's high. Lets see what happens.
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5 comments:
How long do you think the market will correct?
Do you think the market will crash when QE2 is over?
I am not looking for a crash, just a re-test of the low from 2 weeks ago.
starting to look like a good call
nice
Darin
I assume you went short this morning after the nasdaq broke yesterday's lows with a stop above yesterday's highs, correct?
You are correct
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