Well Traders...the Barbarians are at the gate! The $NDX has been en fuego the last two days, and today was somewhat precarious. The index moved up to $1750, and even broke through for a moment before falling back again. Why is this significant? Look at my original chart for my December trade:
You'll see that when I set up this trade, $1750 was identified as Strong Resistance. This was important because it identified an area that would help my trade remain "safe." If the index breaks this level, then I will need to be very cautious about more upward movement. Either a roll-out or closing a leg may be appropriate should my $1785 level be approachd soon. My hope is that, the index will fall off yet again, and head back down towards support. From there, I would love for the $NDX to become range-bound for a few months (between my Strong Support and Strong Resistance levels). That would give me an easy area to trade in.Happy Trading!
2 comments:
This is a great idea. I am following the plays and modeling them with my own trades on the SPX. The entire strategy seems extremly safe (for the trading world, anyway!) and a wonderful way to approach a strategy with discipline. I applaud your sharing it with us!
Hey Wayne. Thanks for your comments. Would you care to share your spread in the $SPX for the rest of us?
Good luck!
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