#MarketTiming — What goes down can also go up…

Can this market bounce right now?

5/17/2022 —

The bounce gets bigger…

With the NYMO swing signal to bolster the bounce off the bottom, all the leveraged ETFs (see chart below) keep cranking more profits.

For instance, FNGU is up 27% in four trading days, SOXL up 31%, and LABU, the leveraged biotech ETF, up 47%.

In addition, the all-important longer-term market-timing signal, the NYSI turned up today so the bounce could become a full-fledged rally.

If not, watch out.

As Trader Vic Sperandeo once said “if the market doesn’t do what you expect it to do, it will the opposite twice as much.”

(The white flags on the charts’ right axis record the current profit for each $10K traded. Click on the chart for a larger view.)

5/16/2022 —

On 5/10, I asked the question above and took a guess the market would bounce the next day based on on several indicators (see below).

I guessed wrong. But not by much.

Although the market ended up selling down the next day, it was really a guess that was just one day off. That day, I noted: