IBD declares market in up-trend; 4th day of QQQ short term up-trend; TQQQ shines; put options for insurance

GMI6/6
GMI-25/8
T210855%

IBD says Thursday was a follow-through day and the market is back in an up-trend. T2108 is at 55%, in neutral territory. What a hot market!   TQQQ rose 6.23% on Thursday. Since the recent bottom on June 24, TQQQ has advanced +21%. We should enjoy this rise while we can.

One word of caution, 69% of the Nasdaq 100 stocks had a 10.4 daily stochastic value greater than 80, representing an over-bought condition. There will likely be a decline after earnings season later this summer. I have protected some of my gains with   put options. See my post from 2009 on how to use put options for insurance.

5 thoughts on “IBD declares market in up-trend; 4th day of QQQ short term up-trend; TQQQ shines; put options for insurance”

  1. Yes, I do. I sometimes post a chart showing the prior GMI signals. An analysis of the GMI based trading strategy since 2006 showed that trading its signals on the long side outperformed a buy and hold strategy while being out of the market during major declines. The dark liquidity site on the right of my blog tracks a GMI based strategy.

  2. Now that the marked is overbought, finally IBD “confirmed uptrend” of what we have witnessed since June!! This means it’s time to start watching for an opportunity to sell. I wonder if the HIGH price I pay for IBD subs is worth it, but they do have a good list of “Mktleaders”!!

  3. Thanks for the dark liquidity pointer. Good to see the 2x ETF GMI performance. Are there performance charts for earlier years? How much better are the 3x ETF GMI returns? Thanks

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