Nasdaq Composite Index | QLD - Ultra QQQ Proshares

I was out for today’s trading session. If the range on the Nasdaq Composite is any indication of volatility today, it must have been very selective. The ETF QLD - Ultra QQQ Proshares, formed a NR7 trading pattern today. With the Nasdaq finding support at it’s 50-day moving average, and the close near the high of the day, I’ll be watching QLD for a long entry.

QLD moves at 2x the Nasdaq-100 Index. I’ll buy the higher high on the daily chart, with a stop loss below today’s low. I’ll look to short QLD, or go long QID on a break below today’s low. Handing the change of direction back to the bears that quickly would be ugly.

The short-term trend is down on QLD, but with end of year seasonality in play, my bias is long. A few weeks ago when the market was stuck in a pattern of low volatility, the daily trading ranges were small, and finding trades was tough. I could still see the Nasdaq and QLD making a swift, powerful slingshot move to new 52-week highs after this week long shakeout. The major stock market indexes should be back in high volatility mode. As always, I won’t predict on my entry, but stay prepared for the patterns to occur. Trade consciously.