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Custom Nasdaq Spread trading at Wave 4 Support Zone (Update)

 

Oct 20th , 2014 (Update)  Our NDX Custom Spread has moved nicely into the money with a dip in the Fridays S&P Selloff

 

 

Update for the Nasdaq Index by starting out with a long term analysis of the Nasdaq Weekly Chart. The longer time frame indicates a bull trend and higher possible prices. The Nasdaq acts a benchmark for financial products, such as options, futures and funds including the powershares QQQ. The NDX composes the 100 largest non-financial stocks . Todays pullback makes the NDX a good opportunity to buy a Vertical Bull Spread.

 

Based on the Weekly Long term chart, we have seen a nice break higher on the 3rd (Green) wave. Continuing to the Wave 4 Support Zone (Yellow) at Fib Support at the levels around 3795 to 3740 at 23.8% Fibonacci Levels. We might expect an initial short term bounce to X (Green) before moving higher in the next year.

 

Let’s look at our LiveTradr’s Portfolio for this trade ( Portfolio Screenshot) , With 37 Days to go, we traded the NOV 2014, Option Chain .

 

Trade Strategy

Custom SPREAD

Sell Nov 2014, 37 Days before expiry PUTS at price 3625.

Buy Nov 2014, 37 Days before expiry CALL at price 3600.

 

 

LiveTradr Trade Ratings

Custom Nasdaq Spread trading at Wave 4 Support Zone (Update)

ITM Probability

Trade Setup

Timing

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