Swing Trading Strategy:
Bears getting bullish...
Lots of rumors of long-term bears suddenly turning bullish on this market now and wanting to buy stock. They are feeling bold, a little cocky, and want to stroke their ego by getting bullish ahead of everyone else. Like that annoying friend who double dips his chip in the salsa bowl.
I'm actually open to it more now as well, and found it interesting, some of the late day buying that formed some typical bottom-forming candles on the daily chart with stocks like Square (SQ), Starbucks (SBUX), Walt Disney (DIS), relative strength in the FAANG stocks as well as a ton of others.
But right now futs have given up overnight gains and bleeding once again and might even limit down once again tonight. So like we have seen so many times before, end of day rallies have meant very little to these markets.
Indicators
- Volatility Index (VIX) - It's not likely you'll see to many more instances where SPX drops 5% and the VIX doesn't even push 1% higher. Nonetheless, it still closed at a ridiculous 76.45. Those aren't normal numbers and it is holding up with splendid conviction.
- T2108 (% of stocks trading above their 40-day moving average): A 22% drop that took the indicator back under 3%. Still an astronomically low reading and yet to get a legitimate, multi-day bounce out of it.
- Moving averages (SPX): Currently trading below all the major moving averages.
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