The QQQ backed away from the cliff on Monday and its short term up-trend continues. PANW, which broke above its green line (all-time high) again last week, continued to rise.
As did INVN:
And SHEN:
Dr. Wish
Longer term up-trend of $QQQ intact; a new short term down-trend could develop with a weak Monday
With the GMI at 5 (of 6), the longer term up-trend remains intact. IBD sees the market uptrend under pressure and notes that the put/call ratio on Friday was approaching 1.0, a sign that a bounce may be coming as bearishness grows. I am largely in cash in my trading accounts, having had my positions in GLD and NUGT called away at Friday’s close. We are in the post-earnings release period when the market often corrects. As we get close to the end of the month and the end of the first quarter, the market will likely recover as it starts to anticipate new earnings reports. I am waiting to enter positions in rocket stocks when they bounce from oversold levels. I am also continuing to write some weekly call options. Here is the weekly GMI table:
A weak close on Monday would turn my QQQ short term count (U-24) into a new down-trend.
23rd day of $QQQ short term up-trend; strength in $INVN; mainly in cash
Short and longer term trends remain up—for now. IBD now sees the market “uptrend under pressure.” While I remain 100% invested in mutual funds in my university pension, which I cannot trade often, I am largely in cash in my trading accounts. GLD has been very strong and my holdings in GLD and NUGT will be called away Friday as the weekly calls I sold expire way in the money. GLD may be too extended for me to buy back and write calls again on Monday. I sold half of my position in TQQQ on Friday morning because too many stocks that have broken out reversed below their break-out levels. The longer term market up-trend is still in place and I will buy back into the market when this weakness is over….
Recent green line break out INVN managed to rise on Thursday on above average volume. INVN is worth watching for future purchase because of its unusual strength in a down market..
