According to my indicators, the market has moved to an up-trend. The GMI is now 4 and the GMI-R is 7. Wednesday was the first day of the new QQQQ short term up-trend. I am slowly adding to my positions in QLD and other growth stocks. I remain vigilant for any signs that this rally will fail. The key is to have many small losses and a few large gains. Anyone who cannot tolerate and take small losses quickly should not be in the stock market.
Take a look at the T2106 (McClellan) – it’s oversold, so I would be cautious about entering new long positions. I’m scaling out of my longs at this point. Good trading.
Dr. Wish some technical analysis:
In looking for a spot for re-entry, either long or short, I made a table of the 200 and 50 day SMA’s for SPY, DIA, IWM and QQQQ.
All Prices as of 6/16/2010:
SPY
200 Day SMA
Open High Low Close Volume
111.04 111.76 110.17 111.05 206,850,229
50 Day SMA
Open High Low Close Volume
114.67 115.61 113.45 114.63 278,252,557
DIA
200 Day SMA
Open High Low Close Volume
103.20 103.84 102.54 103.22 11,589,575
50 Day SMA
Open High Low Close Volume
106.42 107.18 105.46 106.38 15,061,865
IWM
200 Day SMA
Open High Low Close Volume
63.45 64.04 62.77 63.45 64,005,039
50 Day SMA
Open High Low Close Volume
68.60 69.40 67.63 68.60 86,211,114
QQQQ
200 Day SMA
Open High Low Close Volume
44.92 45.26 44.55 44.93 97,878,174
50 Day SMA
Open High Low Close Volume
47.45 47.90 46.87 47.44 109,201,956
From this day, all are bouncing in between their 200 and 50 day SMA’s with the spread narrowing as of late.
The QQQQ needs to break above the 50 Day SMA for me to go long the QQQQ or QLD.
The IWM is finding resistance below the 50 Day SMA and I am looking to go short once again via SRTY if the PSY and DIA break below their 200 Day SMA and hold their.
The 50/200 cross has a maximum spread of 3.4% on the SPY, 3.2% on the DIA, 8.4% on the IWM and 5.8% on the QQQQ before the 50 day SMA’s fall below the 200 Day SMA’s
Currently in cash waiting for confirmation of breakouts: QQQQ above 50, IWM resistance at 50, DIA below 200, SPY below 200.
Dr. Wish
QQQQ just broke through the 30wk (which has yet to curve up again) and is below the 10wk. QQQQ has moved up through the 30day. From your Worden webinar, you typically do not enter until the 30wk is up-trending and price is above 10wk. Just wondering your rational. The strength of the GMI?
THX!!
You are correct that I like the major indexes to be in a Stage 2 advance with the 30 week average rising. Right now the QQQQ is above its barely rising 30 week average. I prefer the QQQQ to also be above its 10 week average, which is declining. I am therefore just wading back into this market on the long side. If the 10 week average closes below the 30 week I will become defensive.