NDX Feeling the Power

You can't turn your head for a second with the NDX, it's so good at sneaking in and coughing up or putting on 60 points a session. By the time you notice the move it's often too late because it rarely gives pause to a decent pull back to entry.

Two weeks ago on our call we were discussing the NDX chart with regard to 1825 and 1860 levels. We were mentioning that the NDX was having a hard time getting over 1860 -- we'll, that discussion is over.

The NDX closed up 62.74 at 1980.44, a mere 120 points from the 1860 we were discussing 2 weeks ago and more impressive was that 60 of those points came today.

I refer to the NDX as the "wild horse," I rarely trade this index despite the apparent riches because it is so good at reversing without notice, gapping, and generally moving in a more random fashion then most indices.

If you are trading NDX and making money then I applaud you - job well done!

As you can see from this chart, to try and trade a market neutral strategy on the NDX would be quite unprofitable, but it's a great chart to watch as a potential leader sometimes.


NDX Daily Chart: