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)
10/24/3021 — during the day
On the 15th day of the rally, the 3x-leverage ETFs all continue to surge to the upside…
In these fifteen trading days, TQQQ, the Nasdaq ETF, is up 24.5%; FNGU, based the big tech stocks in the FANG index, up 42.7%; SOXL, the semi-conductor ETF, up 23.4%; TECL, a pure tech ETF, up 24.4%; and NAIL, weighted with the home building and home supplies stocks, is up 27.1%.
For the start of the rally, see the comments below the chart panel posted on 10/5 for the open of 10/6, fifteen trading days ago.
The charts below display in the white flags on the right axis the dollars/percentage gains for each $10,000 traded. Click on the chart panel for a larger view.