The Nasdaq Composite and its relevant ETFs – QQQ and the 3x-leveraged TQQQ – are now up eight days in a row.
Said in yesterday’s entry here that the momentum in an index that can rise seven consecutive days often only allows a one-day dip before resuming its rally. This time is appears the gap down on the open today, as small as it was, may have been all the dip allowed in this advance.
With long-term breadth positive, my guess is the market goes up another couple of days, and any dip, whenever, remains a dip to buy.
At the same time there are more and more signs that it is running on fumes.
This advance on TQQQ is up three standard deviations of an average advance. That is rare and not sustainable for long. The stocks in my nifty-fifty list continue to roll over. While the price buy signal remains in place, today’s up move could turn neither short-term breadth nor volatility back to buys.
Also, with long-term breadth positive there is no reason to short anything.
SWING TRADING SIGNALS:
PRICE: Positive. Long (Day 8).
SHORT-TERM BREADTH: Negative. Flat (Day 2).
VOLATILITY: Negative, Flat (Day 2).
LONG-TERM BREADTH: Positive (Day 5).
FEAR AND GREED INDEX: (62, pulling back but still at the greed level).
NIFTY-50 STOCK LIST: 16 Buys, falling; 10 Overbought,5 Oversold, 2 buys today, 8 new sells.
The rally results so far (seven full days):
TQQQ up 11.4 percent.
XIV up 12.5 percent.
UPRO up 4.2 percent.
TNA up 3.4 percent.
The net gain for a basket of the above leveraged ETFs for the trade is 7.8 percent.
Some notable stocks from my lists for the past week: