Daily GMMA of $QQQ shows continued strong up-trend; $BITA: cup and handle break-out

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The daily GMMA chart of the QQQ shows the strong current up-trend in this index ETF.   The arrows show recent GMI Buy and Sell signals.   Note how the short term averages (red lines) constrict when a pause occurs. As long as the shorter term averages are rising above the longer term averages (blue) the up-trend is intact.   This is the RWB rocket pattern I like to see on daily and weekly GMMA charts. The black dotted line is a moving average of 1, to show the closing price of the QQQ each day. (My color scheme for the GMMA differs from that used by its creator, Daryl Guppy. )…….

QQQguppy11142014daily

I had noticed the strong up-trend in BITA over the past year (it has tripled!) and wished I had traded it.   One of my students alerted me to a nice move in the stock on Friday and I bought some.   It looks to me like BITA has broken out of a classic cup and handle pattern. I drew in the pivot point at the high point of the handle. Note the recent all-time high and the huge trading volume on Friday.   It remains to be seen whether this break-out will hold. (If it does not, I will exit quickly.) IBD has a nice article about BITA, which it published after it reported earnings last week. At least I will not have to worry about a bad earnings report!

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This weekly GMMA chart of BITA shows that it has been in a RWB rocket pattern since early 2013 and had a green line break-out (GLB) to an all-time high in mid-2013.   How did I miss such a great move?

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Meanwhile the GMI remains on a Buy signal with all six components positive.

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