A GAME OF EIGHTS

Market timing stocks and ETFs…

Usually in market timing the primary rule would be “buy when the market tells you, sell when the stock tells you.” That is, know full well, most stocks and ETFs trade with the market.

But there can be exceptions.

Let’s once again consider $AAPL and $UVXY…

2/24/2022 — End of the day…

Call it randomness, call it coincidence, call it market symmetry, call it history repeating…

Or just plain call it whatever has happened before will happen again in the stock market.

But here we are again with $AAPL and $UVXY…

Only this time it’s an opposite symmetry to the eight days in a row that last spawned this story.

Instead of AAPL being down eight days and UVXY up eight day, on today’s close AAPL is up eight and UVXY down eight.

THE CALL LAST TIME was, obviously, to buy AAPL and short UVXY.

What happened?

AAPL instantly reversed to a 5.4% gain and UVXY fell 20% (see the post below).

THE CALL THIS TIME is, obviously, short AAPL and buy UVXY.

If this trade does not pay off immediately since tomorrow is the end of a big rally week with momentum it is an indication that both of these have gone too far too fast, and the market has also.

A tumble will come…soon…but still use protective stops.