While I remain on the side lines in cash, it is always useful to monitor the few stocks that can hit an all-time high (ATH) during a market decline. That is a demonstration of remarkable technical strength. The great trader, Nicolas Darvas, liked to focus on stocks breaking out to ATH that had already doubled in the past year. Of these 12, the ones that have at least doubled are: ENSG, SEND, UBNT, TWLO, FTSV, NFEC.
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Beginning Stage IV Decline?
Weekly chart of QQQ shows a likely Weinstein Stage IV decline forming? 30 week average (red line) is curving down.
Day 1 of new $QQQ short term down-trend
Fast daily 10.4 stochastic has now crossed down below slow daily 10.4.4 stochastic. On sidelines in cash.
GMI=2, stays Red; Cash is king
The QQQ closed (dotted line) back below all 12 averages in the daily Guppy chart.
As did the SPY.
Will the prior lows hold? For now, cash is king! The time to be invested is when the red lines are rising above the blue lines (daily RWB pattern), as was the case for the QQQ most of the time since 2017.
And the weekly Guppy chart shows very clearly that the longer term trend of the QQQ has changed, with the weekly RWB up-trend pattern gone.
