As we wrote in yesterday's and today's Premarket Pulse, a number of bullish indications underscore the tone of the current market despite its recent rangebound, whipsaw nature. That said, the model sees favorable risk/reward in switching to a buy signal here.
This is not to say the 'all clear' has been sounded as the market has been rangebound and whipsaw. Start with a smaller than normal sized position. If the market heads temporarily lower, you should be able to hold onto the small position, assuming the model stays on its buy signal. Further evidence in terms of leadership and general market action supported by positive price action in your chosen ETF(s) would be a good place to add to your position.
SPY (S&P 500) - slightly lower beta than QQQ so slightly less reward but also less risk and commodities which carry weight in the S&P 500 have been showing signs of life.
SSO (S&P 500) - slightly lower beta than QLD so slightly less reward but also less risk and commodities which carry weight in the S&P 500 have been showing signs of life.
UPRO (S&P 500) - slightly lower beta than TQQQ so slightly less reward but also less risk and commodities which carry weight in the S&P 500 have been showing signs of life.
TECL (S&P Technology Select)
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