Monday, September 30, 2013

Thinking of Increasing Long Exposure on Pullback

Take a look at the market averages... There's a HUGE shift in character that started last Friday from weak positive divergences last week to increased positives Friday. Now that HY Credit is starting to go nuts, I think smart money knows the outcome.

 SPY 5 min, large positive recently

SPY 15 min and 10 min is positive as well


Even the 30 min is moving now.

IWM 5 min at the head fake of the ascending triangle

IWM 10 min with a large move.

The Q's are the only thing making me think a pullback is probable, but I'm going to look around more, I may or may not give weight to the Q's.

 QQQ 2 min

QQQ 3 min

The DIA also looking positive on the 5 min

all the way to 15 min

XLF of course positive at the 15 min, I still like Financials (XLF or FAS).

This is the smoking gun, it started Friday of last week.
 HYG 2 min

HYG 5 min

HYG 10 min

HYG 15 min.

This is what I'd call a smoking gun, with accumulation at 15 mins that fast, I'd say there's very little chance that the market fails to shoot higher.

I'll probably be looking mostly at leveraged assets such as options or more likely 3x leveraged ETFs.

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