Saturday 12 March 2011

Weekend updates (2): How i will trade for 3rd week of March 2011

The Nasdaq Composite had experienced 2 gap down since mid-Feb 2011. Can you spot the 2 gaps?
Unfilled gaps are often trend killers so we can have reasons to believe that we are seeing a short term top here. If that is really the case, then we could be sitting on top of a gold mine now for short sellers.


I like to trade TYP (bear ETF) when it comes to shorting the Nasdaq Composite.

How to trade this setup? Buy at current levels with stop loss at blue spots (tight or loose) indicated on chart below. First possible target $24 region.



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