As written in my Article (NASDAQ short setup) from last Friday before the Easter weekend, I proposed a short engagement as long-term position in the NASDAQ index. After rechecking the trade yesterday after market close I noticed some important points which are against this setup right now:
- VIX index declined by 10% to a level of 13.8
- All main indexes rose steadily to higher levels (except of some weaker indexes like the ATX and the STOXX index
Nasdaq could support its position above the MA21 but still below the MA50For long-term trade and in general for all trades it’s of utmost importance to only trade the facts. This means on the one hand trading only confirmed price movements in the charts. And on the other hand to check also the overall market environment. Which I did by checking other main indexes and the Volatility index.
That said, we are currently still in a short-term to mid-term upward trend and until this setup stays valid there is no opportunity for the proposed short trade.