$RTN shoots higher and 9 stocks come up in my new highs and good fundamentals scan


This market is becoming stronger. The GMI switched to a Buy on the close of July 1 and the QQQ short term down-trend may end Thursday if the QQQ is up or level. Nine stocks came up on my new high with good fundamentals scan: $FNV, $DFT, $HII, $COR, $UFPI, $ULTA, $NSP, $PATK, $AMZN. Meanwhile, $RTN has also moved to a new high.

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Stocks that climb to new highs early in a market turn often prove to be among the new leaders.


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GMI back to Buy, but $QQQ short term down-trend intact; ugly charts: $GS, $BAC, $AAPL, except $GLD


It has been a wild ride with the GMI signals reversing quickly from Sell to Buy. I like to give my signals a few days after a change  before I act on them.  So I will watch mainly from the sidelines for a while. I am very concerned about the down-trends in many bank stocks. Look at this “naked” chart of the 4,10, and 30 week (red line) averages for GS, a leader in the financial area. The gray solid line is the weekly close, currently leading the other averages lower.

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Most of the major banks have emerging down-trends like GS. Here is BAC.

Screen Shot 2016-07-04 at 12.26.47 PMAnd then there is the ugly AAPL chart.

Screen Shot 2016-07-04 at 12.27.41 PMOnce charts top out, one never knows where the bottom will be. At least for now, these charts indicate to me stormy weather ahead for this market and maybe the economy. And then there is strengthening gold, GLD, perhaps reflecting fear and a weakening dollar.

Screen Shot 2016-07-04 at 12.35.27 PMHere is the dollar ETF, UUP. Its 30 week average has topped out.

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And  the GMI is now 5 (of 6) and signalling  Buy!?



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8th day of $QQQ short term down-trend; brick wall?


We shall now learn whether this market can hold up after the funds finish their end of quarter window dressing on Thursday. The GMI remains on Sell and IBD still sees market in correction. The QQQ has rebounded to its key declining weekly moving averages. It will be interesting to see if the QQQ now hits a brick wall. Check out this weekly chart.

Screen Shot 2016-06-29 at 9.41.32 PM


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7th day of $QQQ short term down-trend; also Stage 4?


This market still looks to me like a Stage 4 down-trend. It will take more than a low volume bounce to convince me that the worst is over. I am in cash in my trading account and going to cash in my university pension. There is plenty of opportunity to profit by owning stocks when an up-trend is evident. The name of the game is to conserve one’s capital.

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