Sending this out because the area of rejection is so important that we cannot emphasize it enough. On a closing basis in the Nasdaq Futures 14575 is about as big as a level we have seen since 13000. We expect a battle and we are going to go out on a limb and call a short term top here with stops obviously above this area.
Technically we have a top in and unless the Nasdaq closes above 14600 well, this is how you play it. Yes its stepping in front of a train, yes the day is not over and yes it is ok to trade markets from both sides. The hardest or at least one of the hardest things to do is to have the guts to put something on. The second hardest thing is the ability to add to winners as opposed to taking them off for profits.
So in order to play this we will continue to look to sell the Nasdaq with closing stops above 14600. Each and every time we do this if you keep your position size adequate then you should survive it, you should be able to sell as many times and get stopped out or…
