BROAD STOCK MARKET TRADE ALERT (3:30 pm EDST)
The NASDAQ broke to a new all-time high today so many traders may be stopped out of their short position entered on Tuesday. Those traders should remain out.
The stop loss on the short NASDAQ index fund that I chose (QID) came close but did not break today, so I am going to hold my short position into tomorrow. Although our weekly bearish divergence signal with the other two indices is now negated, there is a chance the NASDAQ is making a "double-top" formation here, which could also be bearish. We also note that today's new all-time high in the NASDAQ is not being duplicated in the DOW or S&P 500 (intra-weekly bearish divergence), although the latter two could catch up tomorrow.
If the NASDAQ can close the week tomorrow above 15,404, I will manually bail out of my short position even if my index fund stop loss holds. Traders who are still short can do the same or bail out now, depending on their loss tolerance. Bailing out today gives us a loss of about 1% on the trade.
The NASDAQ broke to a new all-time high today so many traders may be stopped out of their short position entered on Tuesday. Those traders should remain out.
The stop loss on the short NASDAQ index fund that I chose (QID) came close but did not break today, so I am going to hold my short position into tomorrow. Although our weekly bearish divergence signal with the other two indices is now negated, there is a chance the NASDAQ is making a "double-top" formation here, which could also be bearish. We also note that today's new all-time high in the NASDAQ is not being duplicated in the DOW or S&P 500 (intra-weekly bearish divergence), although the latter two could catch up tomorrow.
If the NASDAQ can close the week tomorrow above 15,404, I will manually bail out of my short position even if my index fund stop loss holds. Traders who are still short can do the same or bail out now, depending on their loss tolerance. Bailing out today gives us a loss of about 1% on the trade.
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