At yesterday's close we forecast a bounce that would stick today and we got it in spades. The NYAD opened at 4.15 and typically any opening with a NYAD reading greater than 3 will not fade to the red by day's end. That was the case today as SPY gradually rose to R3 levels and beyond just pre-close although momentum for today's last hour was negative. Tomorrow we'll see how how much of today's mojo was short covering....the opening NYAD reading should provide a good telltale. Tomorrow's Friday, a 70% bearish day of the week, so there's that to deal with also.
As noted on the M3 site I'm switching back to the M3 model from M3+. The performance metrics over the past month have been almost identical but the longer term risk profile of M3 is more attractive. This risk advantage can be traced to M3's use of the SPY ultra ETFs SDS and SSO to gain ground relative to SPY when the volatility based ETNs XIV and VXX are not in timing sync with SPY, which has clearly been the case over the past few months.
M3 subscribers can study the nuances of M3 versus M3+ on today's login page.
Chart courtesy of FreeStockCharts.com
