Technical Analysis On The Nasdaq And Why You Should Be On The Sidelines
I have been reading a ton of rant today about how the volume on the buy side is thoroughly awful. This is definitely not accurate in regards to the Nasdaq.
Buy side volume has been escalating into the upward move. Provided you regularly watch my vids you understand that I absolutely like buy side volume climbing into a up move. That suggests more and more followers are coming over to the bullish side.
An additional reason this is bullish not only for the Nasdaq but the whole stock market is because of sector rotation theory. Technology stocks are often the first to head the market out of a bear market.
Think about it. Where is the modernization coming from to lower expenses to business? Technology. More and more corporations have increased their use of email and decreased their use of normal postal mail to cut expenses. Greater number of companies are purchasing more computers to advertise for free over the Internet and save money on in-print advertising. Quicker copiers are being bought with instantaneous convert to pdf and email from copier capabilities. Without a doubt, slender and focused companies will a recession make and tech is the vital component which makes productivity and expense reduction workable. Thus it makes sense that tech is the bull market leader coming out of a recession.
From a technical analysis viewpoint you ought to not be trading in this market. You should be on the sidelines right now as no dominant group, neither bulls nor bears, have come out as the leader. At the end of June the bears held the trend but all that changed in July. Over the previous 2 weeks, the bulls have been so dominant that they have negated the downtrend and forced us into a cash and sidelines rating.
Yet if we do get a pullback here, I believe we’ll have a higher low and a fresh trend channel could develop. Commit to memory, a large amount of trend channels have lifespans that are to a large extent shorter than the current downtrend channel we have experienced ever since April. In other words, this downtrend channel is past its life expectancy and we could have a new one form shortly.
The method to play this market is to stay in cash and let the big boys fight this out for dominance. You are a tiny warrior and do not want to get trapped between two attacking armies. Wait in the bush and let the armies fight it out. Once one army, either bulls or bears, becomes dominant, then spring out of the underbrush and attack on their side. Just put your bets on the winning side once a obvious dominance or trend has developed.
In Stock Trading News This Last Week And A Special Effects Video
It’s certified. The Stock Trading Master got out smarted by institutional traders. What happened? Lance was suckered in to shorting the stock market by the bearish Head and Shoulders top and the Burial Cross and then was murdered by bulls as the stock market reversed.
Even more complicated, this is the Stock Trading Master’s third loss in a row. This means that the trading directive activates where Lance tells himself he must park himself on the sidelines for at least five trading days.
It is amusing. When you don’t have a personal investment in the market how unambiguous things end up being. You are not a bull considering matters from an optimistic preconceived notion, nor are you a bear seeing matters from a negative bias. You in fact own no partiality since not an iota of your own money is at stake. Therefore, your opinions become clear as you see the stock market for what it really is.
Having a trading loss directive is so significant that some tribute the fact that institutional traders out trade amateur traders simply since they have such a decree. As soon as a gentleman at a trading desk has a series of losses, the supervisor comes up and taps the trader on the shoulder. This means he is done for the trading session. No questions. No arguing. At the time the tap comes, you turn off your trading workstation and go home.
In this episode Lance literally breathes flames in rage over his 3 repeated losses. Lance then rips into himself and screams no more trading!
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