The Nasdaq 100 and the usually giddy FAANGs have been so revved up since March that their recent idleness is understandable, especially with the uncertainty of the election hanging over them. In contrast, the Indoos and the Russell 2000 look like they are developing thrust to celebrate a Trump victory. When it happens, don’t be surprised to see the Naz and the techs underperform relative to their feverish trajectory since March. Over that time, ‘value’ took a back seat to ‘growth’ for long enough to raise doubts in investors’ minds about the sanity of those they’ve entrusted with their nest eggs. That’s why we should expect portfolio managers to fake a demonstration that value consciousness is not dead. Nasdaq futures are a cinch nevertheless to hit the 12,804 target shown in the chart as soon as Trump’s re-election is viewed on Wall Street as likely. Just don’t expect the erstwhile lunatic stocks to rampage with the kind of rabid fervor they displayed in the past. _______ UPDATE (Oct 27, 9:54 p.m.): A fall to the green line (1193.44) would trigger a ‘mechanical’ buy, stop 10,656, that’s more enticing than a similar one in the E-Mini S&Ps. I’d suggest using an rABC trigger on a smaller chart to initiate the trade, or to tune to the chat room for guidance if you don’t know how. ______ UPDATE (Oct 28, 10:46 p.m.): I’ll wait to hear from subscribers who bought at the green line before I establish a tracking position. It would take a 10,656 stop-loss. ______ UPDATE Oct 29, 10:03 p.m.): The trade triggered and went on to produce a profit intraday of as much as $5300 per contract intraday. Some subscribers reported having done it, but they all appear to have exited before the futures dove back to the green line. The trade and its 11,730 target remain valid in theory, as does the stop-loss at 11,192. In practice, however, unless you are still in the position and cashed out at least half of it near the top, I’d recommend moving to the sidelines. It’s Friday, and there’s no telling how investors’ mood might change over the weekend.
NQZ20 – Dec E-Mini Nasdaq (Last:11,197)