I ended up selling all the oil stocks I had on Friday soon after the open. There just wasn’t any follow through. That was a wise choice, since they’ve tanked since then. I was lucky there. The Nasdaq Composite tried, but couldn’t hold a new 52 week high. That’s a failed breakout attempt. Does that mean the stock market is set to fall from here? I have no idea. I’d guess though, that today’s selloff was post options expiration related.
This may be consolidation before a quick move higher. I’m guessing this move goes slightly lower, and we see new 52 week highs within a month. One way to play the move is through the Proshares ETFs. It’s time to revisit one of them, MZZ - Proshares MidCap400.
This ETF has a nice retest which held, with a buy signal today. It would be just like the market to use the 50 day moving average (in red) there as a magnet, and have the bears thinking they’ve won the battle. Remember, MZZ is an ultrashort, so you go long it, but are actually double shorting the MidCap 400. Stops on this trade could be set under the previous day’s daily low. Tighten the stops by moving to smaller time frames, but remember to stay with the time frame you commit too.
