Flash Alert: Stocks Perk Up as Bottoming Proceeds. Plus Two New Momentum Trades.

Time to bottom fish and test the waters.

I’ve been suggesting that the stock market was forming a bottom and that a bit of bottom fishing was called for. And today’s action suggests that I may be right, at least in the short term. Certainly, it doesn’t mean the worst is over or that a new low isn’t around the corner. But today’s action is encouraging and worth taking a few chances on the long side while remaining cautious. Thus, I am adding two new trades to the short term focused Momentum Portfolio.

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The New York Stock Exchange Advance Decline (NYAD) has been quietly forming what looks to be a tradable bottom. A move above its 20 and 50-day moving averages would confirm that the odds of lasting reversal are increasing.

Meanwhile the U.S. Ten Year Note Yield (TNX) is hovering near 4.6%, which is not very encouraging. On the other hand, the rise in yields doesn’t seem to be bothering the very oversold stock market.

Meanwhile Bitcoin (BTC) is clawing its way back above its 20 and 50-day moving averages after finding support just above $90,000.

Thanks to everyone for your ongoing support. I really appreciate it.

Thanks also to all the current Buy Me a Coffee members and supporters. Special shout out to new members who now have access to the Sector Selector ETF Service, included, at no extra charge with your Buy Me a Coffee membership.

For active trading, short term trading strategies, check out the Smart Money Passport.

For large potential profits with longer term holding periods in stocks check out the Smart Money Passport Weekender Portfolio.

If you’re thinking about day trading, my new book – Day Trading 101

– will get you started along the right path.

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