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Based on a few factors, my charts as one of the major factor I am concluding that the Nasdaq is nearing a top, after over shooting its 2 year high of around 2860 all the way up to 3000 points.
I have to give the U.S Federal Reserve credit for injecting so much printed into the stock market to inflate it, I didn’t think the Nasdaq was going to hit 3000. Never fight the Fed, they are powerful when it comes to manipulating the market. This was done of course to make people think that the economy is booming.
Personally, this affected me in the form of a little short-squeeze as I own shorts on the Nasdaq. The squeeze however was not that much.
Now, looking at my charts it looks like the Nasdaq technology index seems to be weakening and also based on the reaction of the market yesterday to Apple’s announcement of the iPad 3, I believe it is time for a correction. Think about it…Apple announced a product and the Nasdaq only moved +25.37 points, that is +0.87%. This is not a good sign.
Let’s stand back and watch what happens to the Nasdaq over the next few weeks. My guess is that we are looking at a 5-10% pullback and then the markets will rise again until election time in November, 2012. Whether it will hit new highs by November is anybody’s guess.
During the decline of the Nasdaq, I plan to sell my Nasdaq bearish ETF’s, cha-ching and take some money off the table.
by Das Brain
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