Things are getting interesting on the NASDAQ 100. In the last 4 trading days we have printed 2 normal days and one neutral day. Normal days are rare. I mentioned this yesterday:
last Friday we printed a normal day. Normal days are anything but ‘normal’ …they only occur 6.36% of the time, according to my last study. A normal day sets a large initial balance then never breaks it. They tend to show up at-or-near inflection points.
Today’s normal print looks like the one from Friday, featuring a strong morning sell then no follow through.
Perhaps I amuse you, wringing my hat over the building nuances on the NASDAQ. There is way more action in stocks, mostly to the upside, I could be making money on instead of ‘being right’.
But that’s not how I roll. Having a bias when scalping /NQ_F improves my stats. Also, when this balance breaks (and balance ALWAYS breaks) it will set up a huge move and I will eventually be working with the winning side. Ahead of the break my bet is that the move out of balance will be lower.
Abnormalities are what I look for when trading. Finding high probability stats and building trades around them. That’s objective trading 101. We built Exodus around the premise that if we get people trading objectively they will find their path to consistent profitability. This trading ethos manifests itself in pretty much my entire body of internet work.
Back to the present. I have a bearish bias because rules. The caveat is every other index is acting super bullish. So the NASDAQ needs to lead the whole shit house up in flames otherwise the march higher continues.
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