Following the bouncing market: a progress report…

The market bounce suggested in this link — What goes down too far too fast bounces — two days ago, a market-timing buy signal for yesterday’s open is currently playing out profitably as the general market has continued up for the second day in a row.

The Nasqaq Comp has rallied 72 points since the bounce call two days ago.

So far the 3xLeveraged ETFs mentioned: TQQQ is up 2.1 percent, UPRO up 4 percent, TNA up 2.5 percent, the leader SOXL up 5.1 percent; and notably, a steady leader all this year, BIB is flat so far on this swing.

Among the top stocks ORCL is up 2.5 percent, AMGN up 3.2 percent, GILD up 2.8 percent; and notably, perennial leader, AAPL is not participating so far in the bounce and is flat.

For options plays: the QQQ August 110 in the money call is up 20.5 percent and the SPY August 207 in the money call is up 46 percent.

The time nears to tighten stops or take some profits on this bounce but the next question will be can it morph into a full-fledged rally?

Update (Day 4 of the bounce (Thursday’s close):

Fairly positive day in the market. The Nasdaq Comp is up 89 points on this run.¬† TQQQ is now up 4 percent on this swing, UPRO up 5.1 percent, TNA up 2.8 percent, SOXL up 6.8, and BIB up 2.1 percent. As for the stocks mentioned above ORCL dipped to 2.3 percent but AMGN moved up another 2.3 percent today and GILD, 2.1 percent. AAPL is still flat; if it doesn’t play catchup tomorrow, I have more on that later. Futures (NQs up 26pts) and call options again had a decent advance for the day.

Almost needless to say, this has been a good week for the bounce call above but it’s getting a bit extended. So again, as a swing trader, I am taking profits and tightening stops to lock gains for this swing but that’s just me.

(Click on the chart for a larger picture)


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