A little too much oversold - with upside limited
Not really surprised after the pop-up from the bottom. Yet, I noticed the traded volume really wasn't that significant for a 7% swing day.
TO me, I read that as a bear market signal, where you have heavy dumping with HUGE volume, but also a crazy comeback, with very little volume.
Thus, I do think it's really easy to profit from the swings at this moment, and more cautiously, it's about where you should place new shorts.
A typical fib level @ 0.618 is pretty reasonable for me, but I'd love to see it bounce back to .786 to add extra. Nasdaq is always pretty mad when it comes to "buy the dip", so def huge opportunities for both shorts and longs.
TO me, I read that as a bear market signal, where you have heavy dumping with HUGE volume, but also a crazy comeback, with very little volume.
Thus, I do think it's really easy to profit from the swings at this moment, and more cautiously, it's about where you should place new shorts.
A typical fib level @ 0.618 is pretty reasonable for me, but I'd love to see it bounce back to .786 to add extra. Nasdaq is always pretty mad when it comes to "buy the dip", so def huge opportunities for both shorts and longs.
Note
Very interesting levels at this moment... Clearing off the longs would be a smart move, and let us see where NQ could rise up to. But at this moment, it's more rewarding to engage in shorts compare to long the equities.
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