Be prepared to short a cross over of the MACD on Nasdaq Futures.
In spite of all major economic indicators showing a rapid decay of conditions and inflation showing no signs of letting up, the market continues its rally, now into its 7th week. Nasdaq investors seem particularly focused on buying, even under selloff pressure. This is what I call a zombie market. It's hard to wrap ones head around why the market continues higher, except to recognize too much liquidity in the market and stock purchases made in desparation, for lack of a better word.
With consumer sentiment at all time lows, and concerns within the market, this market is setting itself up for a rapid downward move to the lows. Be cautious and wait for the MACD to cross, before you look for your set up to short. In the mean time, I would wait for a one day pullback to relieve the overbought condition and go long, using stops to make sure you're not caught in a huge plummet downward, which can come at any time in my opinion.
If you do not use the MACD, an approximation would be 3 consecutive closes down and a failed rally on the daily to short.
Note: We are in a bull market, regardless what the news says every day. its contrary to what makes sense. I would not recommend any long position, other than intraday trading with stops. This market will resume the down trend eventually, unless by some miracle, the economy recovers.
With consumer sentiment at all time lows, and concerns within the market, this market is setting itself up for a rapid downward move to the lows. Be cautious and wait for the MACD to cross, before you look for your set up to short. In the mean time, I would wait for a one day pullback to relieve the overbought condition and go long, using stops to make sure you're not caught in a huge plummet downward, which can come at any time in my opinion.
If you do not use the MACD, an approximation would be 3 consecutive closes down and a failed rally on the daily to short.
Note: We are in a bull market, regardless what the news says every day. its contrary to what makes sense. I would not recommend any long position, other than intraday trading with stops. This market will resume the down trend eventually, unless by some miracle, the economy recovers.
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