Look for the Upcoming Pullback
Even though the overall global markets are overbought with the ConnorsRSI reading of our Country Fund ETF Universe above 70, the U.S. is beginning to pullback and QQQ is the most oversold Country ETF today. This has allowed the Daily Battle Plan Model Portfolio to gain both long and short exposure at the same time while our short volatility exposure continues to perform well.
The rally has now run in a straight path for a month and you can see from a number of indicators that it’s in full “risk-off” mode. Even though this US led bull market remains in place, any shock, meaning any unexpected occurrence, has the potential to create a sharp short-term pullback.
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The above excerpt is from Larry Connors’ Daily Battle Plan – A professional-grade trading information service that will help you understand the quantitative metrics behind each day’s market conditions and how they point to selective strategies for high-probability trades.
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