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I wrote yesterday that 40% of new QQQ short term down-trends end in less than 5 days. I subsequently tweeted on Monday that it looked to me like the current down-trend might end on Tuesday. The market often declines before rising as earnings are released. I sold my small position in SQQQ and bought a little TQQQ. Almost all (91%) of Nasdaq 100 stocks rose on Monday and many tech stocks came to life. My scan for stocks having a blue dot (daily 10.4 oversold stochastic climbing back above 20) identified 79 stocks from my watchlist of stocks recently on IBD/MS lists. Included were well known stocks: CROX, ARM, TWLO, ROKU, DECK, DDOG, ADSK, COST.

Here is an example of a stock with a blue dot on Monday. If I buy one, I place my stop below the low of the bounce. Note the prior blue dot on October 31. Black dots are another oversold bounce signal I follow. To learn how to place dots on a TC2000 chart, see this video published by my late co-instructor, David McCandlish. Note that my parameters for the dots have been slightly modified since this video.

More than a year ago, my stock buddy, Judy, told me about QS. Judy had researched the company and was excited about the solid-state battery they were developing. This morning she called me to say that QS was rocketing higher on news with enormous trading volume and that I should buy some. She also noted that QS had a high short interest ratio signifying that many speculators will need to rush to buy shares to cover their short positions. So I bought a little at $8.02. QS subsequently ran up today to $10.03. I am holding the shares long term because, according to the news, the company’s tests of their battery have exceeded expectations and it may eventually become a major breakthrough product for EVs. Apparently Volkswagen agrees  since it has a position in QS. Way to go Judy! (The blue and black dots on the chart are my oversold bounce indicators and the “N” means I wrote a note after the purchase.) As with all new products there is risk from other competitors and it will likely take a while for the battery to be ready for mass production.

A stong advance is evident when the 4wk>10wk>30 average and the stock continually climbs above the 4 wk average. It is clear from this chart that QQQ is now below the 4 wk average (red dotted line). If it closes the week below, it suggests to me that the recent up-trend is over for now. We now have to see whether it finds support at the 10 wk avg (blue dotted line). SPY and DIA show similar patterns. The longer term trend remains up as long as the index is rising above the climbing 30 wk avg (Stage 2). I am mainly in cash now in my trading IRA.