Stock Market Technical Indicators & Analysis
When the shorter averages (red) decline below the longer term averages (blue) leaving a white space between them, it is a daily BWR down-trend. I will not hold long positions except money market funds or treasury ETFs (TBIL). Dotted line shows daily closes. This is my modified Guppy chart based on Daryl Guppy’s GMMA indicator. Guppy’s book is listed on this blog.
Note what a daily RWB up-trend looked like beginning last May. Ignore the news and opinions and let the market guide our trading.
On February 4th I posted that a new QQQ short term down-trend had begun. QQQ went sideways after that but QQQ may now be entering a longer term Stage 4 down-trend. If it does so, we may be in for a sizable decline. That signal got me out early from the large declines since 2000. I have been posting that I prefer to be in cash. If the 30 week average turns down, all of my funds will be in cash. Be very careful. Most people who have not experienced a major market decline may be slaughtered. Look at recent above average weekly volume declines. Gray line in chart shows weekly close. If we enter a Stage 4 decline I will post the indicator I use to detect market bottoms. Study the Livermore quotes below that I showed my students.
GMI=0 and RED.
Every night I use TC2000 to filter 6,300+ US stocks to find those hitting an ATH that day. Sectors with many stocks reaching an ATH are attracting buyers. I only am interested in stocks that have recently reached an ATH. To understand this strategy, look at the evidence I posted in my 2025 TraderLion presentation on Day 6. Stocks at an ATH are showing incredible relative strength and there is no overhead supply of sellers to stop it. Fewer than 200 stocks out of 6,000+ US stocks typically trade at an ATH on any given day. Today, only 86 stocks did so. The last time more than 100 did so was on February 9. So with so many aerospace/defense stocks trading at an ATH on Monday, I looked at the 3x bullish leveraged ETF for such stocks and found this wonderful cup and handle break-out. Many break-outs fail in a down-trend, but with an expanding war in Iran and huge break-out volume this setup might work.
