Dr. Wish

Blog Post: Day 57 of $QQQ short term up-trend; Since day 1 on 8/25 QQQ +8.9% but $TQQQ +24.5%, outperforming 85% of NASDAQ100 stocks and 94% of S&P500 stocks. The 15 NASDAQ 100 stocks that beat TQQQ are shown below. Buy the haystack!

@ 10:39 pm
GMI6/6
GMI-26/9
T210843%

Rather than trying to predict the minority of individual stocks that will beat TQQQ, the needle in the haystack, why not buy the haystack? See Les Masonson’s excellent new book about TQQQ. Find his book listed in this blog page. These 15 stocks did better than TQQQ. MU did best with a gain of 110.36%. Almost one half (7) were semiconductor companies. Did you buy them on Day 1 on 8/25?  Buying TQQQ on Day 1 is easier, but scary. You are buying at the beginning of a new up-trend, which you may not trust. I have replicated this analysis many times over the years with the same results.

 

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Blog Post: Social Media abuzz about Friday’s bounce off of 50 day average; Major indexes also bounced off of lower Bollinger Band and had a blue dot signal, see daily chart of $QQQ and analysis; This week we see whether the bounce can hold. GMI=3

@ 7:56 pm
GMI3/6
GMI-22/9
T210836%

Either Friday’s bounce will hold or it won’t or it will fake us all out. The fact that QQQ (and DIA and SPY) all bounced their 50 day averages, their lower Bollinger Bands and had Blue dot signals suggests the bounce may hold. At least technical analysts will think so. But I must react, rather than predict or anticipate. If QQQ holds, I may buy some TQQQ. If it fails, I may buy some SQQQ. Or I may sit safely on the sidelines. The Blue Dot of Happiness oversold indicator is explained in my recent TraderLion Conference presentation on Day 6. These days I find it better to hold off pulling the trigger until late in the day when I know where an equity is likely to close. Otherwise I get whipsawed by the moves early in the day.

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The GMI= 3 and the more sensitive GMI2=2. Another weak day for QQQ will end the $QQQ short term up-trend at day 54 and reduce the GMI to 2.

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Blog Post: Technical problems prevented last night’s post. I am mainly in cash with some $SQQQ in my trading accounts. $QQQ failed to hold 4wk avg and is now sitting on critical 10 wk avg, see weekly chart. Short term up-trend in jeopardy. Last night’s GMI stats shown.

@ 1:13 pm
GMI4/6
GMI-23/9
T210831%

If 10 week fails to hold (blue dots) , the next major support is the 30 wk average (solid red line) and/or prior green line. A failure to hold the 10 week will be a major sign of weakness. My trading accounts are in cash with a little position in SQQQ. If the QQQ short term up-trend ends next week I will accumulate SQQQ. The growing number of daily new lows and the many failures of leading tech stocks to rally off of good earnings were major signs of weakness. No one knows when and where this decline will end. We must contain losses. Tonight’s  GMI will be 3 or less.

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