The Nasdaq 100 rallied again on Thursday to break above the recent all-time high and now it looks like it's ready to continue to go higher.
That being said, I am a bit hesitant of getting too aggressive here because quite frankly, the market has been so overstretched in the last several days that we could get a wicked pullback.
That wicked pullback could be very damaging to my account, so I look at the Nasdaq 100 as a market that I'm waiting to see 1 of 2 things. The first thing would be a significant pullback that I can buy into to take advantage of cheap contracts perhaps down to the 25,600 level.
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While that doesn't look very likely at the moment, then I have to maybe start to think about the idea of waiting for a couple of sideways candlesticks. This market continues to be one that I think will remain very noisy and I think it will remain very positive but that doesn't mean that it can just simply defy gravity. That's not how this works over the long run.
Because of this, I think you have to be cautious but also recognize that this is definitely a 1-way trade and trying to fight the momentum is a really good way to lose a lot of money very quickly. We have seen major swings on short-term charts from time to time during the session, but I also recognize that the idea of peace breaking out in the Middle East and interest rates perhaps dropping a bit via the bond market has set the Nasdaq 100.
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