I confess I was half-hoping for some kind of shocking news from Facebook Inc (NASDAQ:FB) and/or Apple Inc (NASDAQ:AAPL), but the only “shock” was to the upside. I have received the usual tumbling-in of emails from people who have given up hope and are going to stop trading. Well, not me. I’m not going to let Tim Cook’s declaration that Apple’s stock is “undervalued” change my plans. Sorry, Mr. Cook.
What I am watching with great interest is the NQ. As the prior post indicated, 3599.50 is a line in the sand that is being threatened. It would be all too easy – almost effortless – for the NQ to cut past this level. The more concerning level is a bit higher – 3627.25 – which I’ve drawn below in blue. If we can stay below that, we’re still in position to trace out a head and shoulders pattern.
Looking at the index itself, you can see this forming pattern more clearly. I’m certainly not the only one to have noticed this pattern, but I’m not going to fail to mention it just because I’m not a special snowflake.
I am presently Long Gold and Short Everything Else. I will wish you all a good night and will see you in the morning.