The QQQQ short term up-trend completed its 6th day on Wednesday. Still, the QQQQ is sitting right on support and the SPY and DIA are in down-trends. This is a good time to sit on the sidelines, in cash. The multiple moving average daily chart of the QQQQ below, a chart type made famous by Daryl Guppy (see his book to lower right), shows that all 12 moving averages are converging, indicating that the QQQQ has been flat over all of these periods. (For example, the average of the closes over the past 5 days is about the same as the average of the closes over the past 50 days). Click on chart to enlarge. In a market like this it is very difficult to ride a trend. The key is to trade only when one has an edge.
