Dr. Wish

Blog Post: Day 6 of $QQQ short term down-trend; 74 US new highs and 97 lows; Friday’s late bounce held $QQQe above its 30 week average, but major indexes closed below their critical 10 week averages; GMI=RED and cash is king; See weekly 10:30 chart of $QQQ and my explanation.

@ 10:10 pm
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This weekly 10:30 chart of QQQ shows it to have closed (gray line)  below its 10 week average (dotted line) on above average trading volume. Compare this pattern to the decline last March and April. The question remains whether QQQ will retake this average or decline to the 30 week average (red solid line) or to the prior green line. A close below the 30 week average and if the red line turns down would give me a major Stage 4 sell signal and the likely beginning of a major decline. Since 2000 this signal got me out early from all major declines. For now, I prefer to be mainly in cash with a little SQQQ in my trading accounts. I only go to cash in my university retirement accounts when the markets are in a Stage 4 decline.

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The GMI is 1 (of 6) and on a RED signal.

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Blog Post: Day 5 of $QQQ short term down-trend; $DIA, $SPY, $QQQ and $IWM are no longer in daily RWB up-trends; This is true even for $NVDA, see its daily modified Guppy chart.

@ 8:21 pm
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NVDA’s short term averages (red) have now converged with their longer term averages (blue). Below is the daily modified Guppy chart for NVDA. The dotted line shows the daily closes.If the red lines decline below all of the red lines, it will be a BWR down-trend (see chart of META below) and very ominous.  Regarding the weakening ETF, QQQ, I am accumulating the 3x leveraged inverse ETF, SQQQ, which rises 3x more than QQQ declines. I am mainly in SQQQ in my trading accounts. The longer term trends remain up so I have not yet exited the mutual funds in my retirement accounts. But market indexes, and especially their equal weighted equivalents (QQQE, RSP), look much weaker. This means that the smaller companies, which are masked by  the large cap tech stocks in the weighted indexes, are much weaker.

This is a daily BWR down-trend.

Blog Post: Day 3 of new $QQQ short term down-trend. Biotechs are coming alive, see list of 7 at ATHs and weekly chart of biotech ETF, $XBI.

@ 11:12 pm
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Seven of 23 stocks at an ATH (all-time high) on Tuesday were biotechs. See the list. Symbol/industry/next earnings date/closing price. They may be worth researching.

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Also, check out this weekly chart of XBI, a biotech ETF. It is in a steady up-trend, tracking the 4 wk avg (orange dotted line). It is not at an ATH. There may be a rotation out of tech stocks and into biotechs.

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