Nasdaq's bull run was unreal. Out of this world. Irrealistic, many would say.
We all knew this was going to happen at some point.
Call me delusional, overly optimistic, or even naive.
But I am not panicking just yet.
We broke through resistance and a pull-back to the new support is a healthy signal. We need the Nasdaq to slow down, we need to put a break to impulse investing, to unreasonable pumps, and, most importantly, to the media pressure.
If I was to treat this chart as a stock, I would place a limit order on the bounce, aiming for a perfect textbook entry point. I know that a bull-run will most likely follow after that.
I might wrong, of course. After all, trading is not an exact science and I'm not considering fundamentals as well as behavioral finance in my analysis.
However, I just feel it is too early to call this a crash.
I will definitely be concerned if we break through the support line. Not until then, though.
When it comes to my trading activity, I had already skipped trading tech for the past week or so, as I felt this was coming this week.
I will now sit on the sidelines until I get some clarity. I might be back on Tuesday with new setups, or maybe the week after. If the sell-off continues I might add more short setups, as long as there is some rationale behind.
Time now to be grateful for our wonderful August, study, enjoy a little break and hope for a new direction soon.
I would love to hear your short-term outlook about the Nasdaq, where do you see it heading in September, and how this is going to affect your trading (or investment) plan.
We all knew this was going to happen at some point.
Call me delusional, overly optimistic, or even naive.
But I am not panicking just yet.
We broke through resistance and a pull-back to the new support is a healthy signal. We need the Nasdaq to slow down, we need to put a break to impulse investing, to unreasonable pumps, and, most importantly, to the media pressure.
If I was to treat this chart as a stock, I would place a limit order on the bounce, aiming for a perfect textbook entry point. I know that a bull-run will most likely follow after that.
I might wrong, of course. After all, trading is not an exact science and I'm not considering fundamentals as well as behavioral finance in my analysis.
However, I just feel it is too early to call this a crash.
I will definitely be concerned if we break through the support line. Not until then, though.
When it comes to my trading activity, I had already skipped trading tech for the past week or so, as I felt this was coming this week.
I will now sit on the sidelines until I get some clarity. I might be back on Tuesday with new setups, or maybe the week after. If the sell-off continues I might add more short setups, as long as there is some rationale behind.
Time now to be grateful for our wonderful August, study, enjoy a little break and hope for a new direction soon.
I would love to hear your short-term outlook about the Nasdaq, where do you see it heading in September, and how this is going to affect your trading (or investment) plan.