I shorted the bounce. What the hell, worth a try.
I am not so sure big tech will get off that easy, where are couple hard down days are simply forgotten as we head into happy Santa season. Yet the last 2 times NDX dropped below the EMAs 10 & 20 it did exactly that; it got off easy and promptly rammed higher along its uptrend. The red dotted line is a rough bounce tolerance. My guessing mind thinks it’s going lower for a test of the SMA 50 at least, or even that gap way down around 6050. But how often has this market done this routine before?
My solution? Realize that the market is smarter than me (it has been, on balance, for several weeks now) and continue to raise cash until the view clears. I’d noted in NFTRH 476 that I was uncomfortably low (for me) in cash & equiv.
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