$QQQ short term up-trend in jeopardy; mainly in cash; $NVAX strong

GMI4/6
GMI-23/8
T210845%

I wrote yesterday that it was critical that Tuesday’s bounce up off of support needed to hold on Wednesday to continue the short term up-trend. It did not, with the SPY and DIA leading the QQQ lower. Tuesday’s bounce was totally reversed. I am largely in cash in my trading accounts now as I wait for the dust to settle. (During Tuesday’s bounce, I had closed out my hedge in SQQQ.) So many people have been counting on a strong end of year.   This weakness could set that up, but I am not going to bet on it.

One of my few remaining positions is a biotech which Judy alerted me to years ago. It rose on Wednesday, indicating considerable relative strength. Here is the daily chart for NVAX.

NVAX12102014

 

4 thoughts on “$QQQ short term up-trend in jeopardy; mainly in cash; $NVAX strong”

  1. dr wish, at what levels do you consider the short ratio to be a factor to watch for when considering initiating shorts? is >20% considered extreme? i remember capturing that from yahoo finance…thanks!

  2. A few question on the GMI timing chart you had posted a while ago.

    1. Is it based only on GMI-1? And not on GMI-2?
    2. Is there any additional weight given to #3 in GMI-1 (QQQ over 30dma) in plotting the timing chart? I recall an occasion when though GMI-1 had flashed a buy, you were not yet long the market. I did not understand why?
    3. Buy signal is GMI-1 => 4 for two consecutive days and sell signal is GMI-1 <= 2 for two consecutive days?
    4. The buy and sell signals are executed on the third day following the "two consecutive days" requirement?

    thanks

  3. GMI counts 6 components equally. It issues a sell signal when it is <3 for two days and a buy when it is >3 for two days. The GMI will likely be <3 for second day on Monday = Sell signal. GMI-2 is not used in the buy and sell signals.

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