During Thursday and Friday we witnessed a dramatic turn in the Bullish Percent Charts - every Index and Industry Group went into Bull Alert or Bull Confirmed. Some of the Index groups have turned up and given a Bull Alert signal from a level below 20%. This is a signal that we have not seen yet in my trading career, which started 15 years ago.
That means one of two things - this is either an amazing time to Buy Stocks, or we will ultimately need to rewrite the rules around using the Bullish Percent Charts. I am going to go with Buy Stocks.
Now I am never one for an all in strategy so we will stick with the shorts we have put on, but it is worth noting that in any of the stocks that were very shortable a couple of weeks ago, they have simply stopped going down. They are not breaking downside levels of support and the market has that coiled spring feeling. We remain oversold - perhaps all of the government moves are finally starting to work.
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