Issue 117: 5 Charts + 2 Catalysts = Nasdaq Poised to Trade Higher - Masters in Trading Digest

5 Charts + 2 Catalysts = Nasdaq Poised to Trade Higher

At Masters in Trading, our focus is to empower traders to find high-probability trades through a repeatable process, with a FOCUS on mitigating risks to optimize returns.

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6 Reasons WHY the Nasdaq is Poised to Trade Higher

Throughout the month of September, the Nasdaq has traded very weak relative to the Russell 2000 small cap index. You can see their correlation in the chart below, along with the recent disconnect. The white line is the Nasdaq. The purple line is the Russell 2000.

The Nasdaq is inexpensive to the Russell 2000 – this is our first reason why the Nasdaq trades higher.

The next chart tracks the Nasdaq’s Implied Volatility going back the last few years.  The implied bands (thick lines below) should act as support when the Nasdaq trades lower, and resistance when the Nasdaq rallies.

Notice how the white line is sitting right on the thick white line (implied volatility bands).  This is the 2nd reason why the Nasdaq is poised to rally.

In this new video, SMCI is a NASDAQ stock that we believe is poised to rally.  The full 6 reasons for the Nasdaq rally are covered in this 10-minute video. Access the PDF in Video.

Masters in Trading Digest - Issue 117

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FINAL THOUGHTS

WHAT TO EXPECT IN THE NEXT MIT DIGEST

The next issue will be released on Friday.

Until then, trade smart and always manage your tail risk.

Thanks for reading,
Jonathan Rose

P.S. You’re invited to our Live Earnings Presentation – Thursday at 4 PM EST
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