Earlier we noted that HUI was still in an AROON downtrend, which is how it closed. But today did the trick in bringing more than a handful of what can be considered leaders to daily AROON up status, joining AG and PVG, which we have been using as early mover examples.
The first step to a ‘buy the pullbacks’ regimen should be the establishment of a new trend. The leaders (AKA quality) are doing just that. If we do not get a decent pullback then the trend change helps if we choose to take positions in favored stocks, considering that the HUI is still 200 points lower than where the risk management regimen started.
The most important thing is that we are now seeing several stocks getting above the 50 day averages and turning AROON green. That is a daily trend change which, combined with the weekly MACD signals gives us a bull signal beyond a normal bear bounce. The next step will be to see more stocks trigger the weekly TRIX, as NFTRH holding PVG has already done.