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NQ 12/8/23 Kompress On The Daily Chart

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Temet Nosc,

Today Friday December 8, 2023, on the daily chart the NQ ended with the start of a Kompress on a bull fire, an upward bull fire bear cross followed by a bull reverse candle, in addition to a bullish trend switch as will as an orange D4. All signs point to bullish price action especially since it bounced off of the 20 day simple moving average, and the D4, four candles back is holding strong. 

However, as you know things never move straight up or straight down. Usually when you see a QSC, that means price action will go up and down, but the long term direction is bearish. As of now the immediate direction is bullish, but how long will that last? Is this a pump fake? If the Sunday candle opens higher then we may have a strong bull trend on our hands. Which means, I need to exit out of my PUT options. I was up, saw a little green, wanted more, and just like that, Wall Street caught me slipping. What should I do?

The way I see it, I can buy to close out or keep my PUTs open and buy some weekly calls, nothing longer than 30 days. Or, I can be patient and let the next two candles confirm the direction of the QSC, or show me we are headed higher. Investing and trading has taught me to follow the charts, never my heart, and never fall in love with your theory. Wars are won in small battles, not just one fight. My PUTs are down now, but could easily be back up again. 

So even though things are bullish right now, I plan to wait for confirmation of the QSC reversal, which is price action going higher than the high of the candle with the QSC, or a QDC pointing up. Once that happens I will adjust my attack. If price action hits the QSC it should drop, but if it does not we follow the trend. Target in sight, stay focused and stay ready!

Invest Wisely,
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