What a Day at the Races. Bulls Are in Control

It's the bulls' ball to fumble for now.

Technical Edge — 

• NYSE Breadth: 90.7% Upside Volume (!!)

• Advance/Decline: 85.8% Advance 

• VIX: ~$20.50

A “90/90 day” happens when we have 90%+ upside breadth and 90%+ advancers. These days are rare but can often mean that the low is in. At the very least, it marks a huge return in demand and can give us a low to trade against. 

Because the rally didn’t start until after 1:30 yesterday, we didn’t get a 90/90 day. Instead, we got a 90/86 day. But I just want you to keep that in mind going forward and why a 90/90 day is relevant. 

That said, yesterday was stunning. We got the rotations setups we were looking for. While we had to take on risk, we did so in a prepared and measured manner and now we are getting paid for it. Updates on open positions are below. 

Today’s PCE number is important — in regards to the Fed — and Friday’s jobs number is critical as well. So keep those in mind as well. 

Dow 

“Daily-up over $339.37 could put the bull-trade back in play.”

That triggered nicely and now we are certainly taking profits after such a big move yesterday. Down to ½ here and maybe look for $350-ish next. 

S&P 500