Signals Turn Bullish
The weekend video newsletter highlighted mixed signals to start the week. With futures higher this morning, most of these indicators have turned bullish.
NYHL Bullish Signals
The Number of new highs once again lead the number of new lows, with NYHL triggering a buy signal. Look for the moving average (black line) to continue it’s bullish path.
Advancing stocks are beginning to negate the decliners as NYAD rises. The long-term trend resumes.
The S&P 500 SPDR ETF (SPY) closed just under the 50 period moving average on Monday evening. This morning we are above this level (273.00 +/-) heading towards 276.00, the approximate location of the descending trend-line illustrated. We anticipate rejection in this zone initially.
Momentum indicators all show that bulls are in control. Considering RSI, as it rises through 50,As an example of potential continuation as price ascends towards the 276.00 trend-line.
Institutions apparently used recent weakness to buy big-cap stocks. Household names like Boeing, Intel, Microsoft, Apple, Catepillar, and 3M, among others gave institutions another buy the dip opportunity. It’s these actions that have me more bullish then bearish at the present time. As price action moves higher in these same big stocks, assume the indices will follow suit.
The watchlist is performing. Look for follow through as futures press higher and the individual stocks kick into high gear this morning.
USSteel (X) is a covered call play. We will buy the calls back on dips, at a lower price, bank the premium and resell them at highs until X starts trending again.
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