Dr. Wish
Blog Post: Day 8 of $QQQ short term down-trend; 38 new US highs and 65 lows; $QQQ remains in a longer term Stage 2 up-trend, but not $DIA and maybe not $SPY; With GMI=1 and Red, it is time to be very defensive and maybe in a little $SQQQ, see daily charts of QQQ and SQQQ, but will last week’s bounce hold?
QQQ remains in a short term down-trend. One way to play this is to own a little SQQQ, a 3x leveraged bearish ETF, that rises when QQQ falls. But we need to be nimble because many down markets have ended in October. As the Sell in May saying says, return on Halloween. Let’s see first if last week’s bounce holds. It may present an opportunity to get into SQQQ a little lower.
Blog Post: Day 7 of $QQQ short term down-trend; 52 US new highs and 142 lows; 10 stocks at ATH, including 3 coal stocks, see list and analysis of $CEIX
Again, 3 of them, CEIX, AMR and HCC, are in the coal industry. List is sorted by current close/lowest price past 250 days. VIST is 3.4x its yearly low.
I want my students to study this weekly chart of CEIX. On September 1, my guest speaker and former student, Richard Moglen, suggested this stock as a possible rising buy and hold stock for my class to consider. I assign many of Richard’s videos to my students.
CEIX, in fact, exemplifies a number of the technical characteristics of advancing stocks that I look for. First, the 4wk avg>10wk avg>30 wk avg. It is in a Stage 2 up-trend. It also has a yellow band pattern, having also closed above its 10 week average repeatedly. It also has several weekly green bars, having bounced up off of its rising 4 week average. And most important, it is above its last green line top, reaching ATHs, and had a GLB (green line break-out) in August.
This daily chart shows that CEIX never closed below its green line after its GLB. Note the second possible entry at the black dots, designating oversold bounces.
