Wednesday, April 25, 2012
I have no interest in a bullish pricing pattern in the Nasdaq 100 until there is an intermediate term change in trend. I'm not going to ignore a bullish pattern, but what a bullish pattern will do for me is keep my "powder dry", or better known as keeping me on the sidelines preserving my capital for opportunities with a "positive expectancy". A failed bullish pattern will have my attention but until then, it is a sit back a wait approach. Nothing forces me to trade, and if I sit in cash all day with no trades, that is better than losing money for breaking rules. My rules are strict.
I mentioned in the prior post on the Nasdaq 100 a bearish flag pattern and what it means, along with the targets being reached. This same post mentioned how we needed to see what pattern develops next. That post is here: http://scottpluschau.blogspot.com/2012/04/pattern-of-day-nasdaq-100_23.html
Yesterday's post on the S&P 500 explains the meaning or what is underneath a double bottom pricing pattern and why it is something to pay attention to. http://scottpluschau.blogspot.com/2012/04/mature-balance-area-on-s-500.html
Well here are the patterns that developed. Bull Flag flies at half mast. Double bottom target would bring it to about trendline resistance.
(Click on chart to expand)
Lastly, I know Apple reported earnings, but to tell you the truth I don't care. I saw a headline and that is it. What my focus is on is the auction of the Nasdaq 100 futures and not "rationalizing" anything. So far it is a potential bullish development in the Nasdaq 100, and let's see if things change or progress. That is all that matters.
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Source: http://scottpluschau.blogspot.com/2012/04/nasdaq-100-morning-report.html
