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I tweeted out this GLB early today when ENPH was at 303. At the time it had a volume buzz = +500%. ENPH closed at an ATH today of 316.31. Follow my tweets: @WishingWealth.

Look at the trading volume today. This is a terrific pattern. There was a huge volume break-out and GLB in late July right after earnings. Then the stock rested and volume settled down, leading to a resumption of the rise today. This might qualify as a Minervini VCP.

This weekly chart shows that we have entered a down-trend like the one that began last April. Whether this decline will break the June lows is unknown. However, any trend follower must respect this down-trend and be in cash or in an inverse index ETF. I like SQQQ. Note QQQ closed back below its 10 week average (purple dotted line).

The GMI remains RED and at 0 (of 6)

Tomorrow afternoon I welcome 135 freshmen to my class. It will be a challenge keeping them interested in a market in a down-trend. The virtual trading exercise will also be difficult for them. I am also teaching without the help of my late colleague and co-instructor, David McCandlish, whose untimely death in a boating accident last February has pained us all. However, introducing young people to technical analysis tools is very rewarding to me.

The GMI is back to 0 and this is no time to be taking on many long positions. Many break-outs fail. An example of a failed green line break-out, GLB, is CELH. Look at this daily chart. On august 23 it had a nice break-out above its green line on above average volume. It stayed above its green line for 3 days and then closed below it. That would require me to sell it immediately. Anytime I buy because of a GLB I must sell immediately if it closes back below the green line. Of course if CELH should retake the green line that would be a buy signal.

Only 2 stocks out of 7,408 reached an ATH on Thursday. One of them, RXDX, had a GLB on above average volume. Let’s see if this one can hold its green line. A stock that can hit an ATH (all-time-high) in this market may have something going for it. RXDX is also a recent IPO having come public in March, 2021.