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 .
Sell Nov 2014, 37 Days before expiry PUTS at price 3625.
Buy Nov 2014, 37 Days before expiry CALL at price 3600.