GMI flashes Buy signal; FB continues to rise

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The GMI stayed at 5 on Thursday and switched to a Buy mode. This is because the GMI closed for the second day above 3. Thursday was the 3rd day of the new QQQ short term up-trend.   I am slowly adding to TQQQ.   If the new up-trend lasts through Monday, its 5th day, I will accumulate more TQQQ.

Meanwhile, FB continues to climb, up another 3.6% on Thursday. This daily Guppy GMMA chart shows that all of the shorter term averages (red) are now rising above the longer term averages (blue).

2nd day of QQQ short term up-trend; GMI = 5

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The market continued to gain strength on Wednesday.   The GMI is at 5 for the first time since October 17.   Another strong day on Thursday could trigger a GMI buy signal.   IBD still sees the market in an up-trend.   It has taken over 40 years of trading to realize I must trust the indicators and not my emotions.   It is scary to buy into a new up-trend because, by definition, it often occurs after a down-trend.   We all tend to drive with our hands on the rear view mirror.   The past colors our perceptions.   So I grit my teeth and go long, but gradually, and in stages.   If this new up-trend lasts for five days, I will pyramid up.   Too many times after a long up-trend, I find that I would have done great had I just begun buying index ETF’s early in the up-trend.   I am doing so now, but will exit quickly if the new up-trend fails.

New QQQ short term up-trend; buying TQQQ

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While the GMI remains in a sell mode, the QQQ short term trend turned up.   Tuesday was the first day of the new up-trend.   I will become more confident of the new trend if it reaches day 5.   Until then, I am buying a little TQQQ. If it reaches day 5, I will double my position. But I will feel much more confident in the up-trend if the GMI can rise above 3.