2nd day of QQQ short term up-trend; T2108 near extreme

GMI6/6
GMI-25/8
T210879%

With the T2108 at 79% (79% of NYSE stocks closed above their average price over the past 40 days) the market is near extreme overbought territory. T2108 can get as high as 85-90%, but when it does the market rally is about over.   So I am proceeding slowly.   Thursday was the second day of the new QQQ short term up-trend and the GMI flashed a Buy signal at Tuesday’s close. LAD, which I wrote about yesterday, moved to another new high.   Other stocks at green line all-time highs are: ABG, CP, V, LMCA, TRMB, EQIX and RAX. All of these were in one of my IBD 50 or other IBD cited watch-lists. They might be worth researching.

4 thoughts on “2nd day of QQQ short term up-trend; T2108 near extreme”

  1. When the T2108 reaches 85-90%, does that always mean a correction, or can the market just churn sideways while the average price catches up?

  2. I enjoyed watching your recent video. In reference to stocks at an all-time high, how do you reconcile buying when the stochastic is at 50 or below? I’m guessing that stocks at all-time highs will not have a stochastic below 50. Do you wait until falls to below 50 before buying?

  3. Great question. There are several set-ups I consider. One is to ignore the stochastic and to buy the break-out to a new high with a stop loss put somewhere under the break-out. The other is to keep a list of possible stocks for purchase and to wait for an oversold stochastic (<20 or 25) followed by a rebound above the 30 day average. I then place the stop below the 30 day average or the low of the day it broke above it.

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