Trading the Trend: long Nasdaq 100
The Nasdaq 100, together with several other US stock indices, seems to have resumed its 2023 uptrend. We thus wish to buy it on a minor retracement lower with an upside target of around 16,000 and a stop-loss at 14,550.
(Video Transcript)
Short wheat proved profitable
Hello and welcome to Trading the Trend on Wednesday, 30 August 2023. Let me go through our latest trades and we were short wheat at the end of July, I believe. Now, if you look at the daily chart, you can see here that we didn't get stopped out before the price of wheat started to come off and we hit our downside target, now at $6.07, and we can cash in that profitable trade.
But if you want to let it run, you can do that too, either with a stop loss above the resistance line here or above the 21 August high at $6.44, that's really up to you.
Another trade we had on, thanks to Jeremy Naylor, my colleague. He went long the US dollar versus the Chinese yuan at around ¥7.20 and that trade is still quite positive here, trading around ¥7.30, and basically you can either cash in your profits here or put your take profit level just below the last reaction through, here around ¥7.26 or so with regards to that trade.
Short soybeans trade made small loss
Last week, I went short soybeans and did so with the idea that this corrective move here was just a correction in another wider correction to the downside.
But I got that one completely wrong. Soybean prices continued to go up, but we had a tight stop loss here in place at $1,385 and got stopped out there straight away. So that trade had a small loss.
Long Nasdaq 100 showing potential
And now this week what I would like to do is to go long the Nasdaq, because as you can see, we've been in a long-term uptrend in the Nasdaq. And now that we've risen above the last correction high, that is to say last week's high, I expect the corrective move we saw in August to have ended at the lows seen back in mid-August at around 14,554 and for us to basically head up towards the 16,000 area or even higher than that on the Nasdaq 100.
So this week's Trading the Trend is to go long the Nasdaq 100 on a minor retracement, perhaps towards 15,220, and with an upside target of 16,000 and a stop loss at 14,550.
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