We flagged oversold for our 3 month algo yesterday and I had a massive TZA position into what I viewed were risk earnings out of MSFT. That risk appeared to be overstated and the stock is off to the races. I closed out TZA and now remain unhedged and that might be a mistake. However, given the success of the 3 mo oversold this year, I am willing to give the market a little time to continue higher — maybe an hour or two.
Each OS has led to a rally in 2023 and today should be no different, give we have solid results out of BIG TECH.
Keep your eyes on breadth, currently at 68%. Should that number sink into the 50s, we might get a downside reversal. However, if we remain above 65% and edge higher — I am thinking we get a ripper into the rest of the week.
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