LagunitaLLC
Long

NDX (05/26/2020 - 05/27/2020) - Gap up and short squeezing!

TVC:NDX   NASDAQ 100 Index
FA
-Demand for oil came back steady as the economy is reopening.
-2nd round of stimulus check is still pending. However, there will be a high chance of approval (Trump's intention). Still, this stimulus package will cause more trouble than people thought.
https://www.youtube.com/watch?v=_2RINfXz...
-Tech stocks are likely FOMO-ly bought due to speculations about economy opening and working remotely. Demand for tech equipment, cloud-based server, online shopping, etc... is expected to be higher than calculated.
-Possibilities for Real Estate crash:
https://www.youtube.com/watch?v=vmpaFiTT...
-FED has scheduled overnight repo for Friday and Monday. Will likely a big gap-up tomorrow.
https://www.newyorkfed.org/markets/domes...
https://www.newyorkfed.org/markets/domes...
-Opening higher in both SPX and NDX can be explained by two reasons:
+Trust from the investor on FED: more people hold long positions over the weekend and will be buying as soon as the market open ( Friday closed higher even when we have 3 days of risk).
+Speculations on economy reopening.
However, it is still risky to start buying for long term. Still, we can trade long in a short period.
Why? -volumes are respectively low- and -US 10Y treasury is still below 0.7%- are investor confidence indicators. The confidence has not yet recovered . So be aware of keeping long positions over this week. So take profits.

TA
NDX is in squeeze: prepare for a huge movement: bullish
NDX is trading above all moving averages: very bullish .
NDX had many chances to drop , however, it went up which indicates the top hasn't been decided yet.
RSI: very bullish .

Bottom line: Trade long and don't hold overnight.

Good luck and have fun.

Comments



thoughts?
+1 Reply
LagunitaLLC kingmidasLXIX
Reply
Dont you think that trend is becoming week? Weekly and daily charts on macd what you thinking about? How it will be managed by FED?

In anyway thanking U for sharing ur ideas!!!
+1 Reply
@qaneza, just updated.
Reply
qaneza LagunitaLLC
@LagunitaLLC, Thanks a lot!!!!
Reply
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