Nasdaq Trend Following Approach

When Trend Following we use moving averages….Moving averages will keep you on the right side of the market. The reality has been a very choppy and sloppy period full of whipsaws. Not overly conducive for profit generation.

These moving averages are now resistance and the fact that the index broke below them is a Big red flag. The major averages made a run at old highs and were turned back. Unless the market can rally back and take out these old highs with some conviction there will likely be lower prices ahead.

My proprietary metastock indicator is now again on a sell…We have seen lower highs and now below both the 50 day moving average and 200 moving averages…This is the 4th time since last year. In general falling below a 200 moving average signifies severe weakness…however this is an old tired bull who does not want to die….Believe anything can happen…trade accordingly….

Nasdaq Trend Following approach