#MarketTiming – $XIV leads the show…

Guessed yesterday there would be an up market today.

Linda Bradford Raschke once said: “Take all of the signals and once in a while you get lucky.”

Lucky today was XIV, following through on yesterday’s gain, for 10 percent on a two-day trade. With a gain that fast on the table it might be prudent to take some off or at least to tighten a stop loss to lock in profits at some level.

TQQQ, which I also favor on these market-timing signals, is 3.8 percent on the two day trade. UPRO, the leverage S&P ETF, is up 3 percent, TNA, the leveraged Russell ETF, up 3.3 percent. A notable leveraged sector ETF in biotech,  LABU, is up 8.7 percent.

We’re talking two days here.

But actually most of this wasn’t much of a guess — all of he signals lined up for a buy and lined up in deeply oversold territory. See the chart below for the kind of bounces that happen after the SPY histogram touches the lower green line marking a two standard deviation decline (no matter how fast). The red line with the red diamonds on the chart is the SPY itself.

And in bull market’s overall it is always “buy the dips”.  And today…obviously.

Must be noted that long-term breadth, although improving, is still in negative territory, which is to say, tighten the stops on the gains so far.

SWING TRADING SIGNALS:

PRICE: Buy. (Day 1).
SHORT-TERM BREADTH: Buy. (Day 2).
VOLATILITY: Buy, (Day 2).

CONTEXT:

LONG-TERM BREADTH: Sell (Day 15).
CNN MONEY’S FEAR AND GREED INDEX: (24 rising, extreme fear).
NIFTY-50 STOCK LIST: 32 Buys; 17 Overbought, 3 Oversold, 12 new buys today, 3 new sells.

(click on the charter for a larger view)

Disclaimer: Once again need to note all positing here are for entertainment purposes and should not be construed in any way as trading or investing advice.

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