Strategic Stock Trade
SST Email For 2/6/2019:
Markets continued their ramp higher on Tuesday ahead of President Trump’s State Of The Union Address this evening.
Regardless, the stock indexes have now traded from their -4-ATR on 12/24/2018 straight up near their +3-ATR on the daily time frame.
That is quite the move higher with virtually no selling. Something has to give and I mean real soon.
The SST Weekly indexes continue Bearish Trend while the daily has made the massive move higher.
SPY volume has consistently traded less than 100 million shares daily on this ramp higher.
Again, the extent pf this move has reached its apex in my opinion. Trading at the +3-ATR is not sustainable.
In addition, the SPY will once again become extreme overbought tomorrow with a green open. It has not been oversold since 12/24/2018.
Turning to the SST NH / NL Charts: 3 of the 4 look-back windows that we track are now bullish. It took some time for the quarterly and yearly to become bullish. The Weekly continues to make lower highs and that is where we make our Strategic Decisions. The monthly time frame is the short-term tactical decision making.
The monthly NH / NL closed with a 1,342, Quarterly = 572, Yearly = 117, and Weekly = 453.
I started NFLX short again today while adding to my AAPL short. I bought more UVXY and started JNUG long.
The SST Daily Index Numbers Closed Trading As Follows:
NAZ = 96.05
DJIA = 98.73
IWM = 97.95
S&P = 98.14