After drastic drop, what's next for Nasdaq
מעודכן
I published idea of 'Nasdaq key zone violated, buyers may come around 13081-13000' two days ago. Now it's clear 13000-13081 couldn't hold(price came to the swing low 12750 and bounced back)
In my career, I've through a lot of market downs, so the recent drastic fall doesn't make me uncomfortable. I got a client who texted late last night, seeking my view on recent falls. I asked him 2 questions:
1. May I confirm the your investment horizon is still 3 years as we discussed last week?(I got a confirmed yes)
2. May I confirm with you the invested amount is less than 5% of your assets? (I got a confirmed yes)
Then, I asked him why bothered the the recent 10% drop. Instead of cutting the loss, we should stick to our investment proposal. (This is a typical asset allocation case, not a trading case)
My point is that if you're trading Nasdaq, you gotta follow your trading plan and action timeframe is supposed to be less than 2H(refine timeframe is even smaller, say 15m). So yesterday, after the 13000 being violated, you should look for short setup to take some quick profit.
If you are an investor, don't bother the recent fall. Ask the below questions:
1. Did fed stop the open market operation(Is the easing monetary policy changed?)
2. On daily and weekly chart, are the trend changed?
3. Are key zones on weekly and daily being violated?
If your answers to the above questions are No! Don't be panic! We have to deal with volatility as a trader or investor. Pay attention to the volatility in the key zone! which is 12250-12480. I will watch how price react to the zone and pattern formed afterwards to determine the next action!
At least now, I'm still bullish!
In my career, I've through a lot of market downs, so the recent drastic fall doesn't make me uncomfortable. I got a client who texted late last night, seeking my view on recent falls. I asked him 2 questions:
1. May I confirm the your investment horizon is still 3 years as we discussed last week?(I got a confirmed yes)
2. May I confirm with you the invested amount is less than 5% of your assets? (I got a confirmed yes)
Then, I asked him why bothered the the recent 10% drop. Instead of cutting the loss, we should stick to our investment proposal. (This is a typical asset allocation case, not a trading case)
My point is that if you're trading Nasdaq, you gotta follow your trading plan and action timeframe is supposed to be less than 2H(refine timeframe is even smaller, say 15m). So yesterday, after the 13000 being violated, you should look for short setup to take some quick profit.
If you are an investor, don't bother the recent fall. Ask the below questions:
1. Did fed stop the open market operation(Is the easing monetary policy changed?)
2. On daily and weekly chart, are the trend changed?
3. Are key zones on weekly and daily being violated?
If your answers to the above questions are No! Don't be panic! We have to deal with volatility as a trader or investor. Pay attention to the volatility in the key zone! which is 12250-12480. I will watch how price react to the zone and pattern formed afterwards to determine the next action!
At least now, I'm still bullish!
הערה
Yep. My zone works. It met some resistance in the yellow zone, need more bullet to pass the zone. הערה
My key zone still holds...הערה
My zone still holds. It may consolidate for a while, accumulate some momentum and form a nice rally to break out the zone. It's one of the possible scenario. 
plan your trade and trade your plan
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