Nasdaq 1.618% Extension Battle Commences
Subscribers this is a very important level
Ok subscribers the Nasdaq has reached an apex where we believe a real technical battle will begin. The early trade around this 11634 September Futures level. The NQ has put in a high today so far up at 11722 and proceeded to drop nearly 200 handles down to a low of 11528.
So traders investors, Magnelibra isn’t the only one that recognizes the significance of this area obviously but as professional managers and traders it is our job to bring this significance to you and we hope you see this. This early trade should lend enough credence to our technical argument. However we want you to know this doesn’t mean we can’t blow through this and resume higher, but rather we want you to know many, many investors will be taking shots at shorting this and this will lead to volatility.
Volatility leads to chop trading, illiquidity and moves that can be a little more whip saw style than you are used to so be cognizant of this if you are using stops. Let me be clear we do not trade with stops, we use directional options hedging as well as cross asset correlation studies to hedge so its a bit more sophisticated but you will continue to learn as you stay the course with us.
Ok here is the chart of the Nasdaq, we also didn’t send out the Friday Settle page due to external circumstances so we will put that out shortly as well:
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