I know I thought we would get an opportunity to buy stocks last week. Fortunately we did not take a bite. I do think there are positive signs happening that could indicate we are going to bottom this week.
The NQ Index that we trade is actually the futures contract for the NDK which is the NASDAQ 100 index. This is slightly different than the NASDAQ index. It is just the 100 largest companies that comprise the NASDAQ. Price has reached the 200 week moving average tonight.
The S&P index gapped lower tonight. I realize this is counter to common thinking but this is a good sign that a bottom is near. It is the ultimate exhaustion in a price move. It creates what traders call Island Reversals and Abandoned Baby price formations. You can look up what that means at Investopedia.
Before taking a long position in stocks we need to see the 10 day moving average flatten out and then a close above the 10 dma.
I am not yet ready to make any metals trades or energy at the present moment, but I like most anything ag related.
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