Nasdaq 100 bounces off Moving averages --> $550 profits.
This is a classic trade, price has been below the moving averages for a long time already and the logical way to trade this kind of market is to short it when it bounces back. It is not advisable to go long as the general trend is still down. For those who go long, you might be lucky if you manage to ride onto a pull back up to the moving averages, but remember, it is still a down trend, you can easily get caught off guard when it moves down in huge spikes. The risk is simply not worth the return....
The trade is simple, at around 10:40 am price started to move down from a pullback, this is a good chance to short as we can place a tight stop loss at above the previous peak at 1603. I shorted 1 contract at 1599 and another 2 at 1594.75 when there was a slight correction. My profit target was 1586 which is around 10 points away from the last point of correction. Within 30 minutes, my profit target was hit with $550 in my pockets.