The QQQQ is back in a short term up-trend and tech stocks rose as mutual funds bought up recent winners. They can then send out their quarterly reports showing how smart they were to own the strong stocks that have done well. The trick is that their reports do not show when they purchased them–often at the end of the quarter long after they have moved higher! So stocks like AAPL , MVSN, CERN and PWRD advanced on Thursday. The strength may last through Tuesday when June ends. Then we may have to wait a few weeks for 2nd quarter earnings to come out to propel stocks higher. For now, it looks like the longer term Stage 2 up-trend in QQQQ is intact and my call options on QLD are doing fine, as are my positions in NTES and HMSY.
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Markets on support-bounce or die
The GMI and GMI-R are back to 2. If the markets close down on Wednesday, I will go short and/or to cash.
Short term up-trend in jeopardy
Monday’s carnage reduced the GMI and GMI-R, and the short term up-trend in the QQQQ is in jeopardy. The longer term weekly up-trend and Stage 2 up-trend are still intact, for now. There were only 4 new highs and 12 new lows in my universe of 4,000 stocks on Monday. The Worden T2108 indicator is now at 35%, and most declines do not stop at this level. Typically, declines end with readings below 25%. I got stopped out of several positions on Monday. This is not the time for bravery, but for close stop losses, in case things decline more.