Nasdaq Probing Upper Limits
NQ continues to lead
The CTA in us tells us that the momentum is clearly on the side of higher and higher equity prices. Despite the news continuing to press the “Covid Resurgence” the broader markets are shrugging things off rather easily. This morning the Nasdaq early trade has mostly been one of a muted bullish tone. I guess cautious buying would be a better description as many are continuing to press this index higher.
With that said we have to play the risk advocate and say, yes we know the bulls are in control, yet we also have plenty of years experience to tell us buying up here from a risk/reward standpoint makes little sense. Now don’t get us wrong, we are bullish as well, yet perhaps PATIENCE should rule the day here and realize we would rather miss the run up to 10800 then buy here and watch it drop to 10550 again.
That is our thought process, now will we be proven wrong and will we just continue upward? Maybe, but prudence is a virtue and its the stance we are currently taking here in the Nasdaq presently. We do feel we will get a bit of a back and fill at some point here and perhaps find better buy locations below this 10700 level shortly.
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