Dr. Wish

Blog Post: Day 6 of $QQQ short term up-trend; GMI=6 (of 6) and GREEN; See weekly 10:30 chart. Up-trend is intact, see my analysis.

@ 5:59 pm
GMI6/6
GMI-27/9
T210851%

The media pundits are all predicting doom or gloom. I prefer to just analyze the current market’s trend and react to it. My indicators have alerted me to get out of the markets early in all major declines since 2000. I post what I am doing in order to teach other traders and investors. When the market closes (gray line) below its 10 week average I become defensive. When it closes below its 30 week average I begin to exit. Now that we are in Day 6 of the QQQ short term up-trend I am slowly adding TQQQ and buying  some individual biotechs and a biotech ETF. I only buy individual stocks that have traded recently at an ATH (all-time high). See my recent TraderLion presentation for my rationale. See also the current GMI table below.

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Blog Post: Day 4 of $QQQ short term up-trend; Biotechs strong again, 6 of the 10 stocks that reached a recent ATH and bounced from oversold with a Blue Dot were biotechs, see list.

@ 6:46 pm
GMI6/6
GMI-27/9
T210853%

I scanned over 6,000 stocks and these 10 stocks came up. 6 of the 10 were biotechs! These are stocks that reached a recent ATH and just bounced from oversold, a favorite setup of mine.  Why were 60% biotechs? If I purchased after a a bounce, I set my stop below the low of the bounce. Separately, of all 59 stocks that reached an ATH today, the largest group, 6, were biotechs (ARGX, MAZE, APGE, RVMD, BBIO, TRVI). BBIO also had a GLB.  A group of stocks in the same industry reaching ATHs is a powerful sign of strength. I prefer to reduce risk by buying a biotech ETF (LABY, XBI, BIB, BBP).

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