Today we are going to be examining the NASDAQ Index. This market, which made its peak in 2000 at the height of the dot com bubble, remains in a secular bear market.
After making a low in March of 2001, this market has had multiyear recovery which has rallied it very close to a 50% Fibonacci retracement level. After a nearly 50% recovery, this market now appears to be faltering.
The months of September and October are now with us and both of these months tend to be treacherous for the equity markets. We would not be surprised to see more of a two-way trading market before it eventually falls on its own weight and resumes a downward path. This is what we expect to happen, however, we are going to rely on our Trade Triangle technology to give us the perfect timing for that event.
In today's video I will show you graphically what I expect to happen to the NASDAQ Index.
There is no need to register for this video and you can watch it with my compliments. Enjoy and don't forget to leave your feedback as a comment on our blog.
All the best,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Mike,
Thanks for your feedback.
We only recommend using the monthly TT for trend and the Weekly TT for timing. The daily TT are not used for stock or Index trading.
All the best,
Adam
Adam,
Like your videos very much, but here's a follow-up I'd like to see you comment on.
Would like to know how you evaluate MarketClub's TT technology in light of the fact that the day the weekly down signal on the COMP had you bailing was actually the low of the pullback followed by a 200 point advance. The low of the day was somewhere around 1929 which was not far from the price at the signal.
Of course, it did throw in a green TT at 2021.86, but it would seem the TT did not correctly call a significant reversal.
This market seems to defy logic/predictions and every time we thought it will go down it has gone up.
I agree with Dan and IMHO the PSAR has more limitations than any advantages. It has to be supplemented with some other indicator(s).
It gets you into the trade very late and the other way to lose money is to set stops based on PSAR specially the PSAR on a daily chart. I got stopped out of many potentially profitable trades because of stops based purely on PSAR. PSAR based on the weekly could mean taking huge losses before you get stopped out.
Trikaal
Adam, I agree with you that divergence in the macd is ominously bearish. As well the bollinger bands are slowly widening again suggest that volatility is on the way. Short selling is a great way to trade because money is made fastest when you are correct.
The parabolic indicator though, IMHO is the easiest way to lose money. That indicator makes you enter late. It is more riskier than entering with the trade triangle signal.
Regards,
Dan