Nasdaq - Ultra tactical short into potential strategic swing.
Risk reward: 1 by 10
short 20% of AUM. Risk 20bp, potential profit 2%.
Short 20% at 4253 stop 4300 on close.
Reasoning:
- Market was unable to make new tops since November 2014.
- From observation, large Triangle after new relative tops are likely to be preceding a correction.
If breaks out decisively - loss 20bp - Manageable.
short 20% of AUM. Risk 20bp, potential profit 2%.
Short 20% at 4253 stop 4300 on close.
Reasoning:
- Market was unable to make new tops since November 2014.
- From observation, large Triangle after new relative tops are likely to be preceding a correction.
If breaks out decisively - loss 20bp - Manageable.
