Shorting in an uptrend market ? $220 profits
5 min Emini Nasdaq 100
Hi,
The market i s rally for now and what remains to be seen is how this small rally can carry on... There are bound to be slight corrections even in a rally,, and it is unlikely that price will just sky rocket all the way up up and up...
You might think that shorting here is dangerous. But look at it carefully, my shorting is not without reason and in fact well supported.. Furthermore, there is good risk/reward, if it doesnt work out... I dont lose that much either..
Reasons
1 Price had been above the moving averages for the most part, the moment it cut my green line, I shorted 1 contract at 1955.
2 This was accompanied by stochastics making a turning point and cutting the overbought line.
3 Similar case for the short-term MACD which cut its signal line..
4 My stop loss is at 1960.5, just slightly above the moving average.. Good risk / reward...
I exited only when price rebounded from the moving averages followed by an up turn in stochastics and short-term MACD at 1944.
Profits = $220