miniNasdaq Momentum Analysis

The Ninja Trader Momentum Analysis
Review of miniNasdaq 100 (NQH08) 2/28/2008

The current trend is down and all orders on the short side may be considered. If already holding short positions, we would look to take partial profits at any retracement to 1,831.25. Traders with remaining short positions after profit taking should consider placing exit stops in the region of 1,831.25. Be prepared for a potential short term price pull back to the 1,843.25 area.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This analysis shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 68.7912. This is not an overbought or oversold reading. The last signal was a buy 11 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 43.74. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 12 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 64. This is not a topping or bottoming area. The last signal was a buy 11 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 17 period(s) ago.


This review is not a recommendation to buy or sell, but rather a guideline to interpreting the specified analysis methods. Past performance is not indicative of future results. There is a substantial risk of loss in futures trading. Futures trading involves a high degree of leverage, which allows for large returns, but also large losses. Due to the high degree of risk you should carefully consider whether commodity trading is appropriate for you. This information should only be used by investors who are aware of the risk inherent in futures trading. The Ninja Trader accepts no liability whatsoever for any loss arising from any use of this review or its contents.