I can understand why yor are covering if you don't have quick access to this market.
I suspect 1750 will falter for the Nasdaq within the next few trading days. Some people speculate a re-test of the September lows. All I can say is that 1650 is a certainty if 1750 falls.
From the look of previous market W bottoms, I'm guessing this market will continue to falter on low to below average volume followed by, perhaps, a few days of trading days of heavy volume with the VIX in the high 30s (maybe even close to 40). Of course, the difference this time when compared to the V-shaped attempted bottom in October is that this second leg of the W bottom will be accompanied by some really good volume to the upside when the bottom is hit. There will be a follow thru of volume on the upside.
I don't know if this happens now, or later, as in August or September. But when it does happen, playing the long side will be very, very profitable. :^)
In the meantime, the path of least resistance is still down, in my humble opinion. Unless, of course, you believe 1750 will hold. |
