We were stopped out of all stock positions over the past few days. Yesterday the Nasdaq fell right to our stops at 135000 and turned back up. We were hoping to not get stopped out as we were expecting an HCL and then a continue in trend up but it does not always go as planned. As we stated in our post Preparing for Upcoming ICL, on 2/17, we were waiting for the 3 day RSI to hit oversold levels to confirm an HCL. The 3 day RSI reached those levels in the Nasdaq and Russell. The S&P and Nasdaq are currently in the process of completing a swing low and all indexes are trading up.
We are recommending getting back in stock positions with stops just below the low of the index, 13460 in the Nasdaq, 3880 in the S&P, and 2200 in the Russell. If you enter now you can get in the Nasdaq at 13700, the S&P at 3925, and the Russell at 2240.
We do need to keep in mind we are still in the timing band for an Intermediate Cycle Low. These are usually much larger drops then the dip we just saw and provide amazing buying opportunities. We will look to tighten stops to our buy in price quickly in preparation for the ICL, which we are anticipating but may or may not come in strongly trending markets like this.
Recommended entry or exit prices may not necessarily be reflected on the track record. Markets can change quickly resulting in stops being moved or profit levels changed based on new information. Brokerage customers are the recipients of these potential price adjustments made after initial recommendations.