Twenty-six-point-one percent in little over a month since long-term breadth gave a buy signal a bit over a month ago.
And now it’s up four days in a row on this swing leg of the rally, wildly overbought, with CNN MONEY’S Fear and Greed Index lodged solidly in the “extreme greed” level, and short-term breadth clicking down a bit today, all signs that the market and the stocks are both ripe for a dip if not a sell off but…but it has to turn down first and it has not done that. Amazing how many times traders can look at something going straight up (or straight down) and convince themselves this move is going to end – right now! Maybe, but until is does there is nothing to do but tighten stops but still give it enough room to keep going.
Among the other leveraged index ETFs, like TNA, XIV is up 23.2%, UPRO up 9.7% and TQQQ, the Nasdaq 3x-Leveraged ETF, is the laggard up only 6.7%. In a four letters TQQQ’s trouble is AAPL, with the highest weighting in the index – down 4% on the same market signal in the same time period.
Among the leveraged sector ETFs, ERX (energy) is up 35.3% on the signal, LABU (biotech) is up 24.1%, SOXL (semiconductors) is up 24% and FAS (financials) is up 11.9%. Same market signal, same time period.
We’re talking a little over a month here so it has to be said yet again – this what swing trading is all about.
SWING TRADING SIGNALS:
PRICE: Buy. (Day 3).
SHORT-TERM BREADTH: Sell. (Day 1).
VOLATILITY: Buy, (Day 3).
SPY CLOSE – 250.35.
QQQ CLOSE – 144.41.
LONG-TERM BREADTH: Buy (Day 34).
CNN MONEY’S FEAR AND GREED INDEX: (79 rising, extreme greed level).
NIFTY-50 STOCK LIST: 33 Buys; 9 Overbought, 6 Oversold, 8 new buys today, 6 new sells.