Nasdaq Intraday New Record High: Going For The Moon!

Once again the Nasdaq soars to a new world record high. This morning the Nasdaq peaked at 6180 before it started to correct again. As we can see the Nasdaq has gone, “Vertical”  this morning.  These moves can never be maintained for very long, as a vertical move also represents speed. Besides that we have a 3 wave rally that has been pushed to new record highs.  It’s not 5 waves until waves 3-4-5 show up, and push it much higher one more time. 

Diagonal waves behave just like this so we have to wait it out to see if a 4th wave is going to form. Even bad trend lines will not help us very much as any 4th wave may find support at the 6120 price level.  We have about 3 trading sessions before the end of the month, so this market could still fool around by trying to go higher. If the last move is part of a zigzag, then a complete retracement can happen.

Do you think a bunch of traders were clicking “Buy Orders” this morning because they all reacted to some news all at the same time. Logic does not make the stock market go up and down, as raw emotions do. Even with computer trading and robot algorithms running the show, humans will interfere and usually screw things up. 

Besides a few scary intraday crashes, nothing became of  the 30 year 1987 crash anniversary date. Maybe Halloween will scare investors again, but it’s a pretty scary thought,  if this drags out until 2018.  What we are witnessing is a tech mania that can only end badly. The talking heads will use every excuse under the sun to ignore the fundamentals, and keep reminding us there is nothing to fear as we are in a secular bull market with many years left to go.

I doubt that can happen as insiders have left the “Building” in May of 2017. Only the emotional traders are left in this market, and they could be trapped, because they all can’t get out at the same time.