Is it Time to Jump In?

So many dips, so little time.

After a couple of weeks, where we’ve been nearly 100% in cash, the number of potential trades is once again growing in our Momentum portfolio. This morning I’m adding two new trades to go along with the previously posted conditional trades while raising the sell stop on an option trade that is just blossoming.

Image courtesy of michaelhyatt.com

This morning, as I’ve been noting for the past few weeks, stocks are continuing to build on the notion that a tradeable bottom may be in place. And the more time passes without a new low, the higher the odds of a return to a sustainable uptrend.

The New York Stock Exchange Advance Decline line (NYAD) is breaking above its 20-day moving average, with the 50-day moving average likely to be tested before the end of the week.

Meanwhile, the bond market continues its bearish yield rise. The U.S. Ten Year Note yield (TNX) looks set to test the upper end of its recent trading range with the 4.7-4.75% yield area lurking above. TNX is still hovering near the overbought level on its RSI (70). Moreover, the rise in yields is not pressuring stocks as much as it had been.

Bitcoin is back in rally mode with the $100,000 area likely to be tested. Our current Bitcoin strategy trade is about to be triggered. You can access it in this issue.

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.

I also appreciate single coffees, which you can buy me here.

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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