The new tell

  • Posted by
  • on May 10th, 2015

 

 

As our readers and newsletter followers know we have been using the IWM trend-line as THE tell for months.   The Russell has been the leader now and one step ahead of its brethren this year — once it broke we became more defensive:

 

Chart20150510143038

 

 

We bought support on the 100sma (posted real time on our StockTwits account) on the first test and we dipped long again this week when we saw IWM outperform the other indices.  We bought $MA and $SPLK on Thursday for a swing and were lucky enough to enjoy the solid breakouts on Friday (took some off but still long).

 

Nice trend-line break SPLK — want more on this post 70

Chart20150510144230

 

Solid breakout on MA

Chart20150510144234

 

Once the IWM trend-line broke we lost our “tell” — we couldn’t buy against it anymore.   But now there’s a new tell that has cropped up on our screens and the one we are using to gauge sentiment in this crazy bull market.   The weekly 20sma on the $QQQ.

When the QQQ went over weekly BB it caused a short-term top and then bounced on the weekly 20sma (short-term bottom).   That’s our map now going forward.

 

Chart20150510143105

It gives us a mental edge when we have a clear tell in the market — a map that helps clear psychological noise.   If you swing trade like us then do yourself a favor and keep this weekly chart of the QQQ on your radar.

 

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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