Taking profits on a 7-day swing trade

Been posting almost daily on this trade elsewhere:

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 Monday 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.

Submitted July 17, 2017 at 08:05PM by thegodoftrading
via http://ift.tt/2tkMMW0

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s