Wishing Wealth Blog

Thus far, QQQ has held above last week’s low of 435.11 and has reclaimed its 4 and 10 week averages. My adapted weekly GMMA chart shows QQQ to remain in a sustained RWB up-trend. The dotted line represents each weekly close. The purple dots are the weekly lows. We want all the short term  (red) averages to rise above the longer term averages (blue) with a large white band separating them, hence the RWB pattern.

AMZN had a GLB on Thursday. I would have liked to see an increase in volume. AMZN must not close back below its green line, at 188.65.

Note that I have added a red dot indicator to my primary daily chart. A red dot indicates that a stock closes down on the day it exceeded its upper daily 15.2 Bollinger Band. I do not want to buy on a red dot bar and sometimes may want to sell or trade a potential decline. QQQ has been bouncing between its Bollinger Bands for some time. QQQ is also on its 50 day average (green dotted line). The GMI =2 and could turn Red on Thursday. Be careful.

While a new QQQ short term down-trend began on Friday, many end within 5 days. The fact that QQQ held its lower Bollinger Band, its 50 day and 10 week averages and had a black dot oversold bounce suggests that this bounce may hold. The key is to hold last week’s low. One thing going for the market is that first quarter earnings come out soon. However, now we are getting close to the “Sell in May and go away and comeback at Halloween” period. I am very defensive,  holding mainly cash in my trading IRA and am waiting for Mr/Ms Market to define itself. If QQQ bounces, it may find resistance at the upper BB, around 449. If the Fed decides not to lower rates this year, the market could dive.

The GMI is now at 4 (of 6) but it is still on a Green signal.