Blog Post: Day 52 of $QQQ short term up-trend: GMI back to 6. We want to buy a stock or ETF when it has had a GLB, to ATHs. See monthly chart example of $ARKK.

@ 9:22 pm
GMI6/6
GMI-26/9
T210833%

A green line is drawn on a monthly chart at the highest price bar (ATH) that is not exceeded for at least 3 months (bars). It shows a stock strong enough to reach an ATH that then rests for at least 3 months. When it breaks out to a new ATH (green line breakout, GLB) it can signal the beginning of a major move. A stock that reached an ATH and then declines so a new green line can be drawn needs to overcome all of the sellers who  bought at higher prices (equals overhead supply).  It may never do so. It therefore is a sign of strength when a stock can have a GLB to a new ATH. See the successful GLB tracker on this blog for a few examples of stocks that rose after a GLB.

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Blog Post: Day 51 of $QQQ short term up-trend; 70 new US highs, 105 lows and 15 at ATHs; $QQQ has now returned to support at its 4 wk average; the up-trend is still intact, see weekly chart and analysis.

@ 10:27 pm
GMI4/6
GMI-24/9
T210828%

$QQQ was floating well above its rising 4 wk average (red dotted line) last week. That is a sign of being extended. This week it has returned to this important line of support. We have to see if it will close the week above this line. If it fails to, the next line of support is the 10 week average (blue dotted line). A failure to hold there would be a sign of significant weakness and a possible change in trend. I am mainly in cash in my trading account, having been stopped out of my positions.

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Blog Post: Day 49 of $QQQ short term up-trend; $QQQ, $DIA and $SPY remain in RWB daily up-trends, but there were many new lows last week; the GMI=4 and Green, see table.

@ 8:19 pm
GMI4/6
GMI-26/9
T210832%
However, last week Wednesday (141), Thursday (149) and Friday  (130) had 130 or more new US yearly lows. On Friday there were only  86 highs. T2108 shows that only 32% of NYSE stocks closed above their 40 day averages. This market is very split with many stocks refusing to climb to new highs with the market averages. I have one foot out the door in my trading account. I am a chicken. But the old saying says to come back at Halloween!