Systematic Trading Strategies and Next Level Trading Setups
The weight of the evidence is bullish for large-caps and large-cap techs. SPY represents large-caps and QQQ represents large-cap tech stocks. Even though there are 1000s of “other” stocks out there, these stocks represent the 800 pound
The broader market is fairly mixed with one clear leader: technology. I am also seeing mixed performance within the technology sector and within specific groups. Semiconductors are strong overall, but groups like cybersecurity
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The Fed and CPI are in the past and large-cap techs continue to lead the market highs. SPY, QQQ, MAGS, the Technology SPDR, the Communication Services SPDR and the Semiconductor ETF (SOXX) hit 52-week highs to lead the
The weight of the evidence is bullish for the long-term, but the short-term evidence is a bit mixed. SPX 4wk HiLo% plunged below -30% on May 29th, but NDX 4wk HiLo% did not confirm this signal. Thus, the combo remains net bullish
Chinese stocks wet on a tear from mid April to mid May with the China Large-Cap ETF (FXI) gaining some 40% and breaking its 200-day SMA. FXI then fell back over the last few weeks. This surge and pullback created a potential opportunity because some stocks
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SPY and QQQ surged to new highs on Wednesday and continue to lead the market. Note that SPY and QQQ were the only major index ETFs to hit new highs this week. The S&P SmallCap 600 SPDR (IJR) tagged a new high in May, but RSP, MDY and IWM
The weight of the evidence is bullish for the long-term, but the short-term evidence is turning quite mixed. SPX 4wk High-Low Percent plunged below -30% last week and fewer than 50% of Nasdaq 100 stocks are above their 50-day SMA. Software stocks
As the name suggests, Dual Momentum Rotation Strategies focus on stocks that are in absolute and relative uptrends. This is a two-step process. First, filter out stocks that are in long-term downtrends and only focus on stocks in uptrend. Second, rank
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The long-term indicators are still bullish, but I am seeing short-term deterioration under the surface. This is especially pronounced outside of large-cap tech (XLK, QQQ, MAGS, SOXX). SPY and QQQ are up over the last two months
The weight of the evidence remains bullish for stocks. SPY and QQQ hit new highs and continue to lead the market. The S&P 500 EW ETF (RSP) and Russell 2000 ETF (IWM) did not exceed their spring highs and continue to lag. Large-caps and large-cap techs are
Traders can improve their odds by ignoring distraction signals and focusing on setups with real potential. In general, short timeframes are better suited for mean-reversion, while long timeframes
Differentiating between Short-term Distractions and Setups with True Potential Read More »
Nvidia (NVDA) released blowout results yet again and surged some 6.5% higher in after hours trading. This move is stoking the large-cap tech and AI trade. AMD (chips), HPE (data center), DELL (data center) and TSM (chip manufacturing) are all
Stocks remain strong with strength broadening. Even so, the old leaders are still the current leaders. The S&P 500 SPDR, Nasdaq 100 ETF and Technology SPDR hit new highs over the last few days. Large-caps and large-cap tech continue to
We are seeing a bullish setup in an ETF related to Bitcoin. As with IBIT, the long-term trend is up and a corrected unfold over the last few months. The pattern and retracement amount make this a classic correction. More importantly,
There is a certain ebb and flow in uptrends. Often we see some sort of stair step higher with big advances and smaller corrections along the way. In Dow Theory terms, the primary trend is up and declines within a primary uptrend are
Bitcoin Sets Up with Classic Continuation Signal – Part 1 Read More »
Stocks reacted positively to the CPI report and surged as Treasury yields fell, and TLT continued its May bounce. SPY and QQQ hit new highs on Wednesday. Also note that QQQ is leading the way since the mid April lows with a 9.22% advance
SPY and QQQ remain at make or break levels and this week is key. Another push higher would likely show a short-term expansion in upside participation and add some legs to the current bounce. Failure to push higher at this stage could mark a short or intermediate top. There are two inflation-related
After sharp declines into mid April, stocks rebounded over the last three weeks and the S&P 500 SPDR (SPY) came within 1% of its March high. This March high acts
Six Leaders, but One Is Getting Real Frothy Read More »
There is no change in the broader market situation. Short-term, SPY and QQQ are at their make or break levels for this oversold bounce. Why? Because the short-term breadth indicators have yet to show enough upside participation
SPY and QQQ are at their moment of truth for the current bounce. Stocks surged the last three days with SPY gaining 3.24% and QQQ advancing 4.44%. The current bounce started after oversold conditions in mid April. Over the last 11 days
