UPRO is the 3X SPY ultra bull ETF and many traders believe there is a simple leveraged advantage in trading UPRO in lieu of SPY….(assuming the direction of the markets is forecast correctly). Read the rest of this entry »
After a furious bounce last week, the market may stall and pull-back next week. It will be important for it to hold the 1930 level. A breach of 1930 would then increase the chance that the market bottom was not made on August 2nd and the odds of a visit to the 200-day moving average increase dramatically. If on the other hand the market convincingly takes out 1965 than 2000 will likely be seen in short order.
Looking at the end of day results you can’t appreciate the complete reversal the market made throughout Friday’s session with a couple false starts along the way. For a while all the indices were deep in the red with prospects looking grim. Then, mid afternoon buying took over and we ended in the green. XIV was really on a roller coaster ride but ended up a few pennies. The Qs continue to lead the indices in momentum. Read the rest of this entry »
After a few strong days you will often find some bearish studies appearing. But the Quantifinder provided no bearish evidence yesterday afternoon. Just the bullish one below. It considers the sharp drop in the VIX over the last couple of days after a sharp rise the previous few. Read the rest of this entry »
190 support on SPY held despite continuous global unrest news hitting the tape. We finished the week where we started going into option expiration. If markets are able to close green Monday, the bulls have a better shot going forward. The typical pattern had been a bounce followed by a shallower retest before going up further. CSCO earnings is also next week and could impact overall market sentiment.