The NASDAQ model is flat and in cash.
The short term set up didn’t hit because the S&P futures didn’t get above the 825 stop entry level.
If you are lucky enough to be sitting on the sidelines in this market I think we are very close to getting an oversold bounce. Today the McClellan oscillator closed @ -320, the VIX is at record highs and the long bond was up 7 ½ points bringing the S&P dividend yield higher than the 10yr treasury and the Dow dividend yield higher than the 30yr treasury. Historically these conditions are very bullish for a market bounce.
Above is a performance report that shows how the S&P has performed 30 days after the McClellan Oscillator had closed below -250, 10 wins out of 12 occurrences and average trade of $12,000. As comparison a random 30 day period in the S&P 500 has been up 56% of the time for an average trade of $442.
Unfortunately my S&P model is already long the S&P at much higher levels. I am currently long the S&P with a small position but will add to that position tomorrow if the S&P puts in a bullish range pivot and rally’s 22 pts above the open on Friday November 21st
With this volatility Id keep your positions small and stops loose.
