Rally with the leveraged ETFs?

The market, and its stocks, either goes up or it goes down. It is amazing how difficult it is to recognize that simplicity.

11/8/2021 — at the close

On the 24th trading day of the rally, TQQQ and FNGU have given CCI sell signals, up nearly 40% and up nearly 50% respectively.

In addition the NYMO clicked down at a high level, a short-term market-breadth sell.

With the rally up so much from its start on the open of 10/6, I suppose the combination of those two sells — one on the stock, the other a market signal — is as worthwhile an excuse to take profits as one might want to see.

STOCK SIGNALS: ON A 9-DAY CCI ROTATION

When a stock that is oversold quits being oversold that is a stock buy signal; if it returns to oversold before becoming overbought that is a stop; if it becomes overbought and ceases being overbought that is a sell signal; if after ceasing to be overbought it moves up again to overbought that is a renewed buy signal.

In the meantime, the NYSI continues to rage upwards, taking SOXL up 67%, TECL up 42% and NAIL also up 42%.

These are all spectacular gains in a straight-up rally that has been so persistent in its daily follow-through to the upside it looks as if it can go on forever.

Needless to say, it won’t.

(click on the chart panel for a larger view)