What goes down too far too fast, BOUNCES…

My best indicator for a market bounce is in play (see the circles on the chart below for the historical perspective).  Not much more to say about it except the obvious — this downswing has one day, two at most left to go (unless it’s different this time or wants to crash).

This starts as a day trade and maybe morphs into a rally for more to the upside.  The trades are the usual set of long 3x leverage ETFs — TQQQ, UPRO, TNA, BIB, SOXL — and futures, and options — buying calls, selling puts — and going long various stocks. Follow at your own risk.

(The green line on the chart is the Nasdaq Composite measured on the right axis.)

(Click on the chart for a larger image)


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