Stock Market Technical Indicators & Analysis
Health care plans seems to be strong with both CI and HUM hitting ATHs on Monday. Both had GLBs recently. CI had the largest increase in volume at its GLB. I tweeted about it on July 7, @WishingWealth. Why are heath care plans so strong? See monthly sector chart below.
Stocks near all-time highs (ATHs) with RS at 50 week highs are worth monitoring. All but 2 have a flag indicating they are in my watchlist of stocks recently on IBD and MS lists. They are sorted by current price divided by price 250 days ago. CI and HRMY had GLBs on above average weekly volume, see weekly charts.
My QQQ short term indicator has turned up, U-1. As the GMI table shows, however, the longer term trend remains down. Still, all long term up-trends come after the short term trend turns up. I do not know how long this short term up-trend will last. Nobody knows. I am more confident if it reaches 5 days. Still, I will nibble at TQQQ and sell immediately if the up-trend ends. I will be presenting next Saturday afternoon at the 2nd Annual TraderLion conference. Check out Day 2 at their youtube site.
This chart shows an interesting short term pattern that makes me think this rally is different from recent ones. I have marked short term tops (T) and bottoms (B). In a declining trend we see lower tops and bottoms. However the most recent bottom is higher than the previous one. We did not get the expected lower bottom. It looks like we now may be getting a higher top. This would be short term bullish if it holds on Friday. Sentiment is so bearish and so many pundits expect more market lows, which makes me think things may be about to turn, at least for the short term.
I received some questions about where to draw the green line for HALO. I drew it at the top of the highest monthly bar even though the stock retreated from the high that month. Some people think it should be drawn at 51.57, the peak reached two months later. I adhere to the rule to draw it at the highest monthly bar, at 56.40. When it crosses that line it is truly at an ATH. I will discuss the rationale for green line break-outs (GLB) at my TraderLion presentation on July 16 at 2:40 PM EST.
