UPDATE: What now?
— The God of Trading (@TheGodOfTrading) May 13, 2020
As suggested in the post below, I expected the market to move up this week, not as much as it did, but no matter.
Anytime one is on he right side of a six-day swing, either up or down, one cannot complain.
In this case, it’s six days up.
TQQQ, the 3x-leveraged and preferred trading ETF for the Nasdaq, gained 22% on the swing. Some major bellwether stocks have powered the six days, AAPL, MSFT, NVDA, AMZN FB, all up six days in a row; TWLO up six days and 73% on the move is by far the most spectacular example I follow.
Swing trading…what more can you say?
But what now?
This could stop right here. The NYMO was down today (see the chart below). How many times have we seen that mark the end, or at least a pause, after a four or more consecutive days up?
However, the all-important NYSI continues to rise so, unless this is going to drop right out of the sky, it’s probably a pause or a stall — it takes time to work off $2 trillion of Federal Reserve funny money spent in all the wrong places.
This has been a long spectacular rally since March, a fast up characteristic of bear-market rallies. If this is the end bullish traders and long-term investors who believe the bull market lives on will be in great danger.
If the market drops here and takes the NYSI negative, watch out…
An always remember there is no profit until you sell.