Blog Post: Day 17 of $QQQ short term down-trend; On Friday, 60 stocks reached an ATH: Utilities (12), Gold (7), Oil & Gas (7). Was $$$ flowing into these in anticipation of an IRAN strike? Monday’s action should tell us. Fasten your seat belts….

@ 7:49 pm
GMI3/6
GMI-25/9
T210849%

I find it useful to look each day at the industries that had the most stocks reaching an ATH. It shows where money managers are buying. Why are utilities leading? Look at this Utilities Sector ETF that reached an ATH on Friday. It had a recent GLB on above average volume. Note how it is climbing the 5 day EMA. Will the Iran war benefit utilities?

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The GMI remains Green but I am mainly in cash in my trading accounts. This market looks weak to me. Note the 10.4 weekly stochastic=30. In a strong up-trend this indicator is >80 for weeks. Don’t fight this market. Trading growth stocks profitably is much more likely when the GMI= 6. The last time the GMI=6 was December 5!

 

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Blog: Day 12 of $QQQ short term down-trend, but $QQQ held its 30 week average and Green Line; the GMI remains on a Green signal for now. See weekly chart and analysis. The GMI=4, see table.

@ 6:50 pm
GMI4/6
GMI-24/9
T210856%

$QQQ last week held the 30 week average and the Green Line. It bounced up against its 4 week average. I expect resistance at the 4 wk and/or 10 wk averages. Let’s see if it can close back above the 4 wk average this week. If it fails to hold above the recent Green Line top, it will signify a GLB (Green Line Break-out) failure. It is also concerning that the 4 wk and 10 wk averages are declining. A close below the 30 week average (solid red line) would signal a possible Stage 3 top. A declining 30 wk average will signify an ominous Stage 4 down-trend. Note the possible double top.

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The GMI is still Green.

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Blog: Day 9 of $QQQ short term down-trend; GMI could turn RED Wednesday; See ominous weekly chart below.

@ 7:01 pm
GMI2/6
GMI-21/9
T210856%

I am slowly exiting the markets. QQQ is now resting on support at the Green Line. Past declines often did a few head fakes before the market decline got going. GMI2 is only 1!  We could get a bounce to the declining 4 or 10 week averages. That could offer the  last chance to exit with minimal losses. It looks like a double top is in. I  hope I am wrong.

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