Good morning, Daily Direction readers!
We’ve had a fun week, but we’re still not in the Nasdaq 100 E-mini futures market. That’s because the NQ’s short-term trend remains downward. I know I sound like a broken record, but it’s the truth!
Despite the recent uptrends, all signs point to the NQ selling off near the channel’s bottom. We can’t afford to buy right now since the price is still too high.
However, the NQ’s long-term trend remains up, therefore we’ll have to wait for the price to return to the bottom of the up channel before considering purchasing the market.
We risk snatching the NQ at a high price shortly before a sell-off if we buy now. And, since our aim is to generate a profit, a position like this would be extremely detrimental to our account.
For the time being, we’ll wait for the NQ’s short-term trend to reverse and provide us a good turnaround back to high prices.
Timeframe charts are the best way to determine when the market is ready to buy, so let’s make sure we dig in and get all the data we can:
Daily Timeframe Indicators
When we look at the NQ on a daily timeframe chart, we can see that the market is still too near to the channel’s top, despite the fact that the present data leads to a sell-off. This is all about controlling our risk so that we can make more profitable trades.
The long-term direction is up for the NQ
The short-term direction of the NQ is down for now
The NQ hit our price limit and pushed through the inner up trendline. The market is currently preparing for a sell-off despite the recent surge
Despite the fact that the market has moved outside of our trading range, now is a fantastic time to prepare our buy-in strategy while we wait for the market to return to the bottom of the up channel.
Remember that the NQ has a strong long-term outlook. That suggests we’ll ultimately go back into a buyable position in the short run.
The Bottom Line
I’m keeping out of the NQ market right now since it’s gone above our price limit, reached the channel’s top, and is on the verge of a sell-off. I foresee a selloff before a new bullish rally takes hold, pushing the market to the channel’s bottom.
While we will not trade the NQ during the sell-off, if a new low price is achieved, we will have an excellent chance to enter the market. We’ll simply have to wait and see what happens.
We’ll be looking for a new bullish rally once the market reaches the bottom of the channel
You’d be absolutely lost if you didn’t have my technique to guide you through the current movements of the NQ futures market. That’s why it’s time to start utilizing my knowledge and expertise! You can’t afford to miss out on this.
Keep On Trading,
Mindset Advantage: Breathe
If you’re not breathing, you’re not focused. If you’re not focused, you can’t see the market. Opportunities slide by in an instant. Hazards reveal themselves only when it’s too late.
You need to breathe. Breathing exercises have proven to reduce stress and increase focus.
Sure, you’re already breathing if you read this. But when you trade… you need a breathing regimen. Whatever it is: Through your nose, out your mouth counting to 10 or 100. Find a method and routine that works for you.
You’ll find balance, clarity and focus when you trade. Your heart rate will come down and you’ll just feel better.
Try it. And enjoy your trading.