The next move for the market will likely be up. | stockbee

2/23/2012

The next move for the market will likely be up.

In last 8 days there have been 5 negative breadth day on Stockbee Market Monitor. None of the day was above 300. This indicates very low selling pressure.


This is in line with a orderly pullback in the market. How long this phase lasts is not known, but a 300 plus day and breadth thrust would indicate fresh buying in the market. Currently both 5day breadth ratio and 10 day breadth ratio are below 2. Readings above 2 indicate strong buying.


The practical implications of this has been failure of many breakouts and very weak follow through on some breakouts. For momentum swing traders that can be problematic.

Under the surface several stocks are going sideways and having very orderly pullback. There are hundreds of stocks setting up like that. That kind of action leads me to believe that the next move for the market will likely be up.

It is time to start putting a watchlist together either on stocks or ETF's.



ETF with minimum liquidity of 100000 in last 3 trading days.ETF are ranked by momentum.

  1. soxl
  2. tyh
  3. tqqq
  4. edc
  5. fas
  6. urty
  7. tna
  8. scif
  9. bgu
  10. upro
  11. epi
  12. qld
  13. uyg
  14. drn
  15. mvv
  16. erx
  17. uwm
  18. gaz
  19. udow
  20. tur
  21. pin
  22. itb
  23. xbi
  24. uym
  25. sso
  26. ure
  27. dig
  28. xhb
  29. agq
  30. ura
When it comes to ETF just relying on momentum alone may not be the best way to find swing trading opportunities. Range expansion might be a better way to enter and exit ETF. 

A recent example of a trade on NUGT will show you that. NUGT had low momentum rank but had a range expansion signal and that offered good entry point for swing trade. It is as of now open position.


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