With long-term macro relative strength models going back on a buy, I didn’t want to come into the new month without some long exposure in my equity account, and since I wasn’t getting a lot of individual stock set-ups on my screener (and hey, everything has been correlated anyway), I put on some last minute SSO to get generic long late last Friday, and boy am I glad I did!
The ETF Rewind dashboard was calling for a big move today, but I have to admit I was a little concerned last night with very mild short-term bearish readings and the China growth stories over the weekend. Bottom line though, with most all of the majors now well back above their long-term moving averages again, I expect that the market is telling us something important for long-term dough. After last week’s minor pull-back as the prospective buy opportunity, this run could have legs.
Meanwhile, this morning’s gap held well and initial resistance is currently acting as support.
