Bullish Cycle Continues
Every day the media subjects its audience to knee-jerk reactions. They solicit opinions on which way the equity markets are headed. “The futures are up, the futures are down, the futures are up again, the futures are down.” How does this help navigate the markets? Answer: it doesn’t.
NYSE Composite Bullish Cycle Continues
We can argue our opinions, but we cannot argue about price action. Price does not have a bias. If price action is moving higher, remaining above its short-term moving averages, pushing away from support, then we assume a bullish bias. If price action consolidates (flags/moves sideways) after a substantial appreciation, we need a consistent method to interpret the short-term trend. We see this in the NYSE composite “cycle” in the lower panel.
The cycle is bullish. The recent turn from the February correction is persistent. Looking forward, we are anticipating price will eventually move higher into the most seasonally bullish months of the year.
SPY Bullish Cycle
If price manages to get back above 273.10 look for a quick move to 274.80 (+/-) then 275.70, 278.00 and 282.00 in the next few days. The cycle is the overriding factor. Momentum is accelerating despite the flag for the past 4 trading days. Think of a loosely placed cork popping out of a champagne bottle.
Unless a catalyst appears, the momentum is the bulls to lose. Cycle Up!
Stocks on our trade list:
AAPL AMZN BA BABA BAC CAT CIEN DE FIVE HTHT JNJ KEM LMT MA NOC PFE TSLA UTX V WMT YY
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