Here's a look at my nifty-fifty stocks. Forty-two are on sells, twenty-six of those deeply oversold (both those numbers are notable). The green blocks on the line chart below are daily prices for TQQQ (been pretty ugly choppy, courtesy of AAPL, but getting back in rhythm lately).
So what now? Or as they say, are we there yet? Appears the bears have one option -- crash the market. Otherwise...that reading on the NYMO is likely to snap back any day, actually any second, and my nifty-fifty have once again entered "Bounce Land" as well. So there is a bounce a'comin'! Could take a day -- bears covering tomorrow in fear of Friday? Or two -- Friday's employment report itself? But, barring an outright crash, I suspect down-side time is running short, so to speak.
What I want exactly is to see the market down tomorrow and down some more on Friday (the would be a magic four consecutive days down on the Naz Comp) to set up the beginning of a bottom for a blast into August, but when has the market ever given me exactly what I want?
So the NYMO snapped back as it often does...and my nifty-fifty stocks bounced as expected. Forty-five of the fifty were up, including ACAD, which happens to be number one on the list, up 9 percent from the open and 13 percent on the day (see Linda Raschke quote below). The fifty were up 2.2 percent as a group from today's open. Eight of the nine leveraged ETFs I follow were up, also plus 2 percent as a basket from today's open.
A bounce is a bounce and bottoms begin with bounces so all in all a good day but...
But there's this from yesterday: "What I want exactly is to see the market down tomorrow and down some more on Friday (the would be a magic four consecutive days down on the Naz Comp) to set up the beginning of a bottom for a blast into August, but when has the market ever given me exactly what I want?" Again the market, the market...oh, the market...
Awfully hard to get two consecutive Naz days down in this bull, let alone three or four.The reason I would have liked to see a push down through Friday's NFP news is because four consecutive days down often mark swing bottoms. So didn't get it, so tomorrow's a toss-up...but the bounce is here. If it continues, fine. If not, I will be looking, as always, for a low above a low on the NYMO (for an aggressive trading buy), and a subsequent upturn in the NYSI to confirm we are likely into the next bull run.
Good luck and good trading.
P.S. Changed the line on the chart to the Naz Comp instead of TQQQ, which was on yesterday's post.
Edited by diogenes227, 06 June 2013 - 03:57 PM.
