Dr. Wish

When RWB pattern resumes it will be time for me to wade into the market. RWB up-trend occurs when all shorter averages (red lines) are rising well above longer term averages (blue lines).  Will  a BWR  down-trend  emerge?

Some stocks remain in nice RWB up-trends, like $MTCH, which had a recent GLB and resisted the market decline (great relative strength!). Dotted line is daily close.

Eleven US stocks (out of more than 4,000) that meet my stringent technical criteria and that are worthy of research. All are currently at least double their closes of a year ago, an important criterion of technical strength used by Nicolas Darvas. Note their next earnings dates.

I remain mostly in cash with a small initial position in $SQQQ. The recent history of the QQQ during Red and Green GMI signals is displayed below.

To survive, I must conserve my trading capital. My trading accounts are therefore in cash. The GMI may flash Red at the close on Tuesday. It is much easier to make money on the long side when the GMI is strong and Green. GMI= my General Market Index. The GMI keeps me trading with the market trend. Unfortunately, once again,  I failed to buy a little SQQQ on the first day of the QQQ short term down-trend. QQQ is now below its 10 week moving average (purple dotted line on this weekly chart). Note the failed GLB (green line break-out), a major sign of weakness.

Meanwhile, T2108 is only at 36%, not low enough for a major bottom.