Blog Post: Day 18 of $QQQ short term down-trend; Aerospace and Defense has most at ATH on Monday, 15 stocks. $DFEN, 3X bullish ETF for aerospace/defense, hit ATH on extremely high volume, after retesting its GLB and forming a cup and handle base, see daily chart.

@ 10:52 pm
GMI3/6
GMI-25/9
T210849%

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.

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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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