#SwingTrading – taking profits…

The Nasdaq Composite is up seven days in a row. That is a true testament to the bullishness of this bull market.

My price only trading signal as a result is still positive (will be until it turns down) but seven in a row is rare so a pause in this rally can come any day, any minute. My volatility signal has risen six days in a row before triggering a sell for either today’s close or tomorrow’s open.

With both the short-term breadth and volatility signals on sells now taking some profits would be in order.

Should also be noted that the stock in the nifty-50 list have been rolling over from a high 0f 43 on buy signals four days ago to less than 50 percent on buys today at 21.

However, long-term breadth remains positive so any weakness here is not a short so much as a dip to buy. Often, with a strong 7-day run like this, dips are for only one day before the advance resumes.

SWING TRADING SIGNALS:

PRICE: Positive. Long on last Monday’s open (Day 7).
SHORT-TERM BREADTH: Negative. Flat on today’s close or tomorrow’s open (Day 1).
VOLATILITY: Negative on today’s close (Swing Trade Day 7).

CONTEXT:

LONG-TERM BREADTH: Positive (Day 4).
FEAR AND GREED INDEX: (67, rising into the greed level).
NIFTY-50 STOCK LIST: 21 Buys, falling; 17 Overbought,4 Oversold, 5 buys today, 14 sells.

The rally results so far (seven full days):

TQQQ up 9.3 percent.
XIV up 11.3 percent.
UPRO up 4.0 percent.
TNA up 4.2 percent.

The net gain for a basket of the above leveraged ETFs for the trade is 7.2 percent.

(Disclaimer: This blog entry and all others here are for entertainment purposes only and should not be construed as direct investment advice.)

CNN Money’s Fear and Greed Index:

(click on chart for a larger view)

fear_and_greed2017-07-17_1525

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