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Quality relative strength took place yesterday in the Semicondutor ETF (XSD) as it gained over 1%. In the past, relative strength in the Semi sector was usually good for the broad market. The NDX 100 continues to create some space above its 2007 highs at (1) above. Now the Mid-Cap 400 ETF (MDY) is working on a breakout at (2) in the above chart.
Game Plan….Buy MDY with a 4% trailing stop. Keep 4% stop as well on the NDX 100 and XSD positions (see post here)