58th day of QQQ short term up-trend; riding the up-trend; gold fading

GMI5/6
GMI-26/8
T210859%

The GMI dropped to 5 because the Successful 10 Day New High component of the GMI turned negative.   As long as the GMI remains above 3, I have no concerns about the current up-trend.   Furthermore, next week is the end of the first quarter, and mutual funds will be buying up the strongest stocks so they will appear in their quarterly reports.   The reports don’t specify when the stocks were bought, so every portfolio manager can appear to have bought the winners before they rose.   So, I believe that any weakness in the winners is setting up a major rise at the end of the week into next week.   AAPL and the other leaders should gather strength. I am fully invested on the long side and will ride this up-trend until it ends.

Meanwhile, gold appears weak to me.   I own put options on GLD because I think gold is at the beginning of a major Stage 4 decline. Check out this weekly chart of GLD.

4 thoughts on “58th day of QQQ short term up-trend; riding the up-trend; gold fading”

  1. hence the Cup and Handle on the hourly chart on Apple. Hey Dr. Wish did you decode these new charges Worden is charging for creating easy scans and actually conducting scans on stocks? I am hearing a lot of complaints from other customers about these extra charges? But I am not 100% what they are charging extra for.

  2. Stage analysis is based on weekly chart with 30 week average. Look at the red line on my chart. For the first time since 2008, GLD is below its 30 week average which is now turning down–classic Stage 4 decline.

  3. Ok, so your indicating that since Dec 2011 GLD broke below, came back above and is now below 30 week average. I was looking at the 50 week average.

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