The Nasdaq 100 Index (NQ) futures contract tried its best to break into the daily buy zone earlier this month.
At first, it looked like the bulls were taking over, but the downturn of the past two weeks has put it back in the sell zone again.
With the market breaking bearish, it is now in a short term down channel.
However, before we look to sell the market, we need to wait for one key thing to happen first…
Waiting for Higher Prices
Here’s how we see the market shaping up for the Nasdaq 100 Index futures contract…
The NQ one hour time frame is in a down channel. The market is moving from a low price towards a future high price.
It will be a good idea to look for selling ideas at high prices near the down trend line.
Entry: Counter trend line break bearish near the down trend line.
Stop: In the buy zone above the entry.
Limit: 11,392.75
Once or if the market gives the entry, it will be a good idea to turn to the five minute time
frame and to look for Tunnel Trader / Destination Trader / Chandelier Trader
short ideas towards the daily support price point 11,392.75.
The Bottom Line
There are multiple ways to trade the futures, stock and other markets. We can trade the indexes, both up and down, as well as individual stocks…
But my colleague and equities pro Ross Givens has come up with a brand new strategy that aims to deliver weekly gain opportunities without ever holding a single stock.
If you’re interested, check out the important P.S. below…
For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.
I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.
And before you go, head on over to the Traders Agency YouTube channel for breaking market news, live trading sessions, educational videos and much, much more!
Keep on trading,
P.S. My colleague and expert stock trader Ross Givens is preparing to unveil his brand new “rapid cash” strategy that is totally market neutral.
It doesn’t matter if a stock goes up or goes down… With this strategy, Ross can set up his trades to win in either direction.
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