Saturday, July 19, 2014

Nasdaq case study

Nasdaq case study ;
Main trend is still bullish, but we now have a "pattern warning"
Focus on that "4350" level
Dear readers, its all about risk/reward, forget your ego, forget trying to "be right" all the time, its never about that, its all about protecting your assets.
You know we are in an uptrend, but we clearly know from experience that long uptrends eventually lose momentum, that loss of momentum often comes in a "pattern change".
We could face two types of scenarios right now ;
1) We spike higher, then reverse hard (forming a head), head and shoulder pattern
2) Price goes below 4350 and we end up in a long channel pattern, not a crash!
Long term bullish, why? Big caps techs are actually cheap, full of cash

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