Pardon me while I toot my own horn a little…

THE PAUSE AS SUGGESTED

12/28/2021 — End of the day

As suggested yesterday (see the story below), the market paused today after its four strong days up in a row.

The “pause,” or if one wants to call it a “dip,” was clearly evident in the three leveraged ETFs highlighted — TQQQ, FNGU, SOXL — as all three fell a few percentage points on the day.

Compare the while flag percentage markers on the right axis of the charts below with the same flags on the charts yesterday.

In addition, today the NYMO clicked down today at a high level. That triggers a short term swing sell on the ETFs for tomorrow open.

In the longer run, it means little since the NYSI continues to rise but it is an opportunity to lighten up on positions, take profits all together (they all are in double digits a short amount of time) or set stops to make profits are protecting in case there is more of a pullback now than expected.

(The white flags on the right axis of each chart shows the dollar/percentage gain for each $10,000 put into the trade on that ETF. Click on the chart for a larger view.)

THE START OF THIS UPSWING

12/27/2021 — End of the day