#NiftyFiftyStocks once again signal a bounce

Had 45 of the 50 stocks in my nifty-fifty stock list on sells yesterday (2/9/16).  That doesn’t guarantee a rally but often signals a turn in the market for at least a bounce.

And after today’s overnight down and the run up during the market’s regular session, it appears a reversal may be in.  Another hint that we may go up some from here came in the Dow stocks today – only four remained below their opens at the end of the day and two of those slip at the close.

My longer term swing signals have not entirely turned bullish yet so a rally long here remains iffy until further confirmation.

(right click on the chart for a larger view)NIFTY_FIFTY2016-02-09_1619

 

 

Market – Santa bounce season

It’s Christmas rally time and the stock market could rally the rest of the week.

Nice turn in the market today off Friday’s nasty plunge with divergences all over the place.

For instance, my nifty-50 stock list, after registering an important 40 stocks on sells on the 12/14 drop, could manage 31 on sells on last week’s plunge.

As for other breadth indicators see the green circles on the chart below — plain and simple those often trigger bounces, and bounces can trigger rallies.  In other words, it is likely the market bounces the rest of the week and could maybe rally the rest of the year (just maybe).

I’m looking to TQQQ, TNA and UPRO, the 3X-leveraged ETFs for the major indexes to play the bounce.  Stocks in the nifty-50-list giving new buy signals for tomorrow’s open included EFUT, ZEN, HA, PCRX, AMAT, and WAL.  Big caps giving individual buys signals: WMT, HD, INTC, MMM, SBUX. And there are always futures and options.

(Anything written here should not be construed as investment advice but instead no more than a personal log of my market timing.)

All in all in this traditionally bullish season, it appears one better not pout, and better not cry, because Santa Claus is coming to town.

(right click image for a larger view)

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#Nifty50StockList – picking bottoms with 40-plus sells

Again and again, my nifty-50 stock list moves from oversold to overbought and back again to oversold like an ever spinning wheel within the market’s spinning wheel…

And each time there are 40 or more of the 50 stocks on sells, it’s time to sit up and take notice since that is the number that most often signals either the bottom or the beginning of a bottom on each down swing.

This is just FYI, but it is what market timing and swing trading are all about, and the results can be quite remarkable.  For instance, the last 40-plus sell day was November 13th for a buy on open of the 14th.  On that buy signal, among the leveraged ETFs  TQQQ is up 10.6% (tracking the Nasdaq), TNA up 6.6% tracking the Russell), and UPRO up 10.7% (tracking the S&P 500).

Leveraged sector ETFs include ERX up 12.1% in energy, BIB up 10.7% in biotech, and FAS up 8.6 tracking financials.

Notable stocks on the same signal – AAPL up 4.7%, BIDU up 6.3%, and NFLX up an amazing 15.8%.

This is all in just three trading days so far. Nuff said, I guess.

(click on the chart for a larger image)

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