No. of Recommendations: 2
Consider MTUM (or BATS:MTUM for GoogleFinance) as a "so bad it's good" opportunity for a bottom trawl. If you're unfamiliar, it's a periodically managed (every 6 months reconstituted) ETF of ~125 high momentum large to mid cap stocks. It is about to be re-constituted (11/11) and changes implemented and announced by December.
* It's thrown a 99D / DBE signal (today); still SMA Slope bullish.
* ~18% off its 52w high, last Thursday was in an "official" correction
* Short term across the board bearish: below 20d, below 50d, daily PPO negative, 20d below 50d
* Medium term across the board bearish: weekly Chandelier "out", weekly PPO negative, below 33w MA
Add the consideration that last Thursday's volume (11/5) was almost 8X while the price dropped over 8% down.
It's already bounced 6.7% off of that close. Could be a late feline bounce, could be a solid bottom. Reconstitution will decrease the percentage of AI/semi stocks in it.
Thoughts?
FC
