Stock Markets are Bullish
The stock markets continued to trend mostly bullish last week. The expectations for an end of the year rally seem to be rising. My approach remains the same. Do what the price tells you to do. Not what the analysts and pundits tell you to do.
The S&P 500 is trending strongly bullish. The returns have been strong this year:
1 month: +6.8%
YTD: +25.1%
No one can complain. Of course now the question is whether it can hold those gains or perhaps even increase through the last few weeks of the year. I will be watching and using my model to make decisions.
I currently hold SPXL which is the 3x leverage of the S&P 500 by Direxion.
Reviewing my other holdings:
TNA is the 3x leverage of the Russell 2000 by Direxion. It is trending strongly bullish as is the Russell 2000. The TNA is up +25% over 1 month which is 3x of the Russell 2000 as expected.
FNGU is the 3x leverage of the FAANG+ Big Tech stocks my MicroSectors. It is trending bullish and up +34% over 1 month. Big underlying mover stocks have been TSLA and NVDA.
BULZ is the 3x leverage of the FANG and Innovation stocks by MicroSectors. It is trending bullish and up +31% over 1 month. Many of the underlying stocks are the same as in FNGU. However, BABA and BIDU are excluded which, as we know, have been very poor performers this year.
TQQQ is the 3x leverage of the QQQ or NASDAQ 100 by ProShares. It is trending strongly bullish and is up +31% over 1 month. The technology sector was a laggard for a while but has picked up over the last month.
So far everything looks good and I will not be making any changes to my holdings. I will track daily and make decisions based on the price trends I see.