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The NASDAQ takes a 500 point tumble... Print
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Friday, 30 March 2018 12:46

 

The NASDAQ takes a 500 point tumble...

Markets thrive on uncertainty and that's exactly why these false break-outs work so well. The majority expect the new high to be just the start of the next trend wave. The warning signs were there, a combination of divergence, volume, wave count and Fibonacci

We just needed price action confirmation and this started with the bearish engulfing candle at the high. The next few days neatly set up the sell level as the Colour Charts confirmed. Then, tumble, it did.....

nqwed28thmarc18

Where we are now is in the happy position of sitting on a very healthy profit. However, there are now warning signs of a possible rally that could evaporate those profits.

The prudent trader will be converting most of those paper profits into real ones, leaving just a small part of the trade on for the gamble of an even bigger move.
 

From the blog

What's the Yield Curve Invertion?

What's meant by the Inverting Yield Curve?

 

The blogosphere is full of the impending collapse of the Dow with some pundits talking of 14,000 in 2019, a modest 10,000 points lower. Right or wrong, the fuel that has kept stock markets forever bubbling, an endless wall of money and a strong economy, will eventually end. Is the yield curve telling us the economy is about to fall of a cliff?

Normality

Government and corporate bonds are issued with different maturities. The standard US bond is the 30 year, but there are many different maturities, typically 3, 5 and 10 year, etc. Some run for just a few months to maturity, whilst some whacky corporate bonds have been issued with maturities way out at 100 years!

Read more...

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