Stock Market Technical Indicators & Analysis
Stocks often top out before their earnings do. It may be a good idea to check a daily modified Guppy chart before holding through earnings. TSLA and GOOGL declined tonight after market when their earnings were released. Look at their charts. Both have their red, shorter term, averages declining below their blue, longer term averages, with a white space separating them, hence, BWR down-trends. I showed you recently that NFLX also did, see charts below.
Note the oversold bounce on last Friday signified by the blue dot. This is the earnings release rally I had been expecting. But there were only 83 new highs and 30 ATHs, very pitiful. The post earnings release period wlll be very interesting, if not scary. Note that the GMI has flashed RED.
I am very worried about the strength of the current market. There are times for me to step away. If growth stocks announcing good earnings this week weaken, I fear that the markets are in for a steep decline. Too many young persons who have only been trading for a short time will learn the hard way that minimizing losses is the key to success. This modified daily Guppy chart shows that QQQ is leading all 12 moving averages lower. The dotted line shows daily closes. A new advance will occur when the reverse happens. Look at the pattern last May during that wonderful rally. That is what I am waiting for. I ignore the news and the media pundits and follow the market’s actions.
