TRADING PLAN
Markets continue higher led by techs, semis, trannies and retailers with oils and metals still at the back of the train. The internals continue to be a bullish tell with 2,300 more winners than losers, but I don't see them improving as the markets move higher.
Also, check the VXO as it slumps down to the 13.35 level or about 6% below its 10 day SMA. The general rule is that the markets rarely make much upside progress when the volatility indexes trade more than 5% below their 10 day SMA.
The SMH, which I bought on Friday is now up 2.25% from its Friday close and is the best performing major market ETF on my screens. Hopefully it has a little further to run.
I am looking to buy the oil patch today as the XLE and OIH are getting pasted and now have very low RSI readings. This has been a pretty good buy signal in the recent past and I don't see why today will be any different.
posted by DAVID at
11:15 AM
4 Comments:
Nice call on the SMH. I had some & bought more friday afternoon. Quite a ramp this morning. Hope it holds, but that does not seem to be the trend. Really like your blog comments BTW.
Hey David,
Was it you who mentioned RSI(5) on VIX the other week? I think it was.
Anyway it is now < 30
Cheers
Yes it was- And if you look at the VXO chart, You will see it is under 30-
Well it seems to be working.. nice gap fill
Cheers
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