It is too early to discern if Wednesday’s bounce from oversold will hold. This is likely a good opportunity for me to reduce my holdings in mutual funds in my university pension accounts. I am not willing to risk a return to the losses my 403 (B) sustained before yesterday’s bounce. Failure of this bounce to hold would be bloody. For now, the short term trend of the QQQ remains down.
On the other hand, a lot of my oversold bounce alerts in TC2000 went off on Wednesday. If the market were in a short term up-trend I would buy some of these bouncing stocks. An example would be CELG, which bounced from its lower 15.2 daily BB and crossed above its 30 day average. Check out this daily chart. Note the similar bounces that occurred last October and again in November. If I had purchased CELG yesterday, I would have placed my sell stop just below the bounce, around 108.25. This is one of the best scans that I teach my university students to run on TC2000. I also put my students on a list to receive all of my TC2000 alerts as they are triggered. Let’s see if CELG (and others like it) can hold this bounce for a few days.
Thanks for providing the information on your oversold bounce alerts and your CELG scan. You consistently provide your readers with a wealth of information.
It looks like the GMI-2 has reached 3 since the QQQ did barely close above its 10 week average (101.77 vs. 101.75) and its 5 month average (101.77 vs. 101.55). With the 4 week, 10 week, 30 week average favorable, this puts the GMI-2 at 3. It will certainly be interesting to see how the market responds in the next several weeks.
Happy Holidays to you, Dr. Wish!
Hi Dr Wish. Any chance you could give away the secret oversold scan? I and many blog readers are not able to take your class. I’m sure us little people would appreciate it very much. Have a nice Christmas.