The Nasdaq, after its strong reversal from it’s open yesterday, followed through today with a strong advance.
The bias has been bullish all week based the fact that CNN Money’s “Fear and Greed Index” registered “extreme fear” last week and turned up from there to signal this week’s bounce. I wrote on Sunday: “So Monday the bounce? Then a rally?” That is exactly how the week has played out.
TQQQ, the 3x-leveraged Nasdaq ETF, is up three days in a row, 7.3% (see chart below). XIV, the leveraged volatility ETF, is up 6.4%.
The “Fear and Greed Index” continues to climb and all three of my daily signals (see highlight below) are now on buys.
I expect more of the same for Thursday (although some slowing is likely). Both UPRO and TNA, the leveraged ETFs based on the SPX and the Russell, are up 4 days in a row.
This has once again become a market that is going up until it goes down.
DAY TRADING BELLWETHER STOCKS:
The five-minute day trading stocks for today – FLSR, GS, TSLA, NVDA — were basically flat (up .11%) with three stopped out for small losses and GS up .8% to save the day. Day trading bellwether stocks for Thursday’s open are TSLA, NVDA, NFLX, FB and AMZN.
SWING TRADING SIGNALS:
PRICE: Buy. (Day 3).
SHORT-TERM BREADTH: Buy. (Day 1).
VOLATILITY: Buy, (Day 1).
LONG-TERM BREADTH: Buy, (Day 4).
CNN MONEY’S FEAR AND GREED INDEX: (29 rising, at fear level).
NIFTY-50 STOCK LIST: 30 Buys; 17 Overbought, 3 Oversold, 8 new buys today, 1 new sells.
(click on the chart for a larger view)