The Nasdaq action on July 1 indicated a clear entry point - a "surge" in New Breed terms. A steady climb of 40 points indicated a buy point by end of day. A short selection of high-beta techs should have been bought, before close. There's no real discussion here. Those are the rules.
It's not that the Nasdaq had to spurt the 150 points it has from there. It's that, end of day July 1 was a safe entry point, where the next move was absolutely up. You would be ahead immediately, and if it turned and declined, you could sell at buy-point at no loss. It was a safe entry point. And it just may rise from there, may even be a major bottom. If it is, you're in it.
The market had hit 1685 three times by June 19, looking like a double or triple top. Half an hour into July 1, the market had dropped 50 points in the last three days, and could have been headed down into the depths again. It was only traders, out of the market and waiting, that fully realized the opportunity by day's end - not at the very bottom - 1600, but by the time the 40-point surge had formed.
This is standard thinking behind the highest form of trading around. Many modest, and a few large gains per year, uninterupted by losses, compounding to annual gains of which the investing public is unaware. We discuss it, every few weeks at the New Breed non-commercial site. Join us. Get straight, one time, what can really be done in the market.
New Breed of Stock Trader