IBD Market School indicator suggest we have a clear sky to start testing waters. Here is what the methodology has flagged after the recent Rally Day.
Annotations 1 = Most recent unbroken Rally Day 2 = Follow Through Day 3 = Confirming Buy signal (named B3) 4 = Additional Follow Through Day + Confirming Buy Signal (B8) 5 = Permitable Market Exposure as per the methodology
My approach! I do not have an exposure of 90% currently as 5 suggests. This is only guidence. I am more conservative and rather have taken a few tiny pilot positions. I want to see that the action is confirming. We are reaching the 21EMA on SP500 and hence I expect some stalling here. We also have an important earnings in the recent days, which means that there could be abrupt failure.