NDX underperformance vs. SPX is becoming extreme here, last time (in June 2022 right after the OPEX Quadruple witching we bounced massively on it until mid July
This chart is the Weekly (log term) showing an intact uptrend right at the bottom of it here.
Bottom Line buy here NDX hedged in SPX you are being supported by L/T Moving average below. 200d-MA
Since SPX and NDX moves closer the Historical Volatility 8% (your risk) in entering the spread has a lower than the mrket currenlty at 27%.
This chart is the Weekly (log term) showing an intact uptrend right at the bottom of it here.
Bottom Line buy here NDX hedged in SPX you are being supported by L/T Moving average below. 200d-MA
Since SPX and NDX moves closer the Historical Volatility 8% (your risk) in entering the spread has a lower than the mrket currenlty at 27%.
Transaction en cours:
Stick with Long NDX vs. SPX
Nasdaq and SPX are now in green on the day after the OPEX Friday, things seems to have stabilised on the volatility front. Expecting the idea to work on a potential short covering of Nasdaq position ahead of FOMC mid-week.
Nasdaq and SPX are now in green on the day after the OPEX Friday, things seems to have stabilised on the volatility front. Expecting the idea to work on a potential short covering of Nasdaq position ahead of FOMC mid-week.
Transaction en cours
Transaction en cours:
Using some Fibonacci retracements indicators NDX has a potential to go back towards 12500/12700 within the end of November, early december, which would also corresponds to year end in terms of liquidity window.
I would expect fron there another violent correction starting year end/ early 2023 with an ultimate 8500/8700 target.
I would expect fron there another violent correction starting year end/ early 2023 with an ultimate 8500/8700 target.
Commentaire:
Main support being broken, the criterias are no longer justified with FOMC tomorrow it doesn't makes sense to keep the trade on.
Trade fermée: ordre d’arrêt atteint