Coming off what could’ve been the best oversold flag since I created it in 2008, Stocklabs spit out another 12 month OS on Friday and I don’t believe it’s going to work.
I bought TQQQ out of obligation and respect for the signal which has made me so much money over the years. But truthfully, I feel we are about to tip over into the blades and get ground out. In fairness to the process of playing the signal, you almost want it to be wrong during the first one. When an OS signal hits its begins a 10 day cycle, from which I purchase 33% sized positions in a leveraged ETF product for upside insanity. If another OS hits inside the 10 day cycle, I add another tranche. Last cycle I was able to be FULLY LONG TQQQ into the melt up and ended +23% for my troubles. Should be COLLAPSE next week, I will get an opportune to average down and perhaps it’ll all work out in the end. Nevertheless, if we do bounce hard — I will be selling my TQQQ on the 5th day after the last purchase.
My trading account will continue to focus on commodities, especially non oil related. I will only take tech trades for extreme oversold bounces and will try my best not to get lured back into a false sense of security, pining for better times when the NASDAQ was impervious to news and we just went to work to collect gains every single day.
While not easy and certainly not a bull market, Le Fly, as he’s popularly known in France, remains, inexorably, at recourd highs.
If DXY Sells in London tomorrow I think we could see stocks ramp going into Easter.
BTC is doing a bounce up and usually follows Broader Market Sentiment
SL Algos are probably on the money