Stock Markets turned Bullish short-term

The stock markets turned bullish yesterday. Many of the markets and sectors that I track have now reversed and are trending bullish in the short-term. Note that the long-term indicators are still bearish.

Leveraged Instruments

I like to use the leveraged instruments when markets are trending bullish. We can see from the above table that all of them (except the Gold Miners) are now trending bullish based on short-term indicators.

For the long-term indicators to turn bullish there is some ways to go. We can see that the furthest ahead in the reversal are

1. China - I am already long YINN

2. Healthcare

3. Biotech

4. Big Tech - specifically FNGU

FNGU

Here is chart of FNGU. We can see that the price broke out above its 50-day moving average yesterday. The next resistance is at 12.12 which is about 30% above current value.

CURE

CURE has a resistance at 109.84 which is only 1.2% away. If the price breaks through this resistance level, then it is clear skies.

Looking at XLV to see if there are similar patterns - indeed there are.

LABU

LABU has its resistance 37% above its current levels. Can be a good play.

Let’s see if we see the same trend in XBI. It looks a little better actually.

YINN

YINN is just under 100 now and it has a resistance at 108 and then the next one at 149.

Actions

1. Hold YINN for now

2. Buy small FNGU, CURE and LABU