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Yesterday I showed you   the RWB rocket stock pattern and how it helps me to identify strong stocks.   Tonight I will show you the reverse, the BWR pattern, that can keep me out of stocks in a major down-trend. You can see from this weekly Guppy chart of GLD, how it alerted me early on to the down-trend in gold. Who in their right mind should have been long gold in 2013?

This chart shows ISRG’s transition from an RWB up-trend into a BWR down-trend.

A weekly Guppy chart is all I need to determine the longer term trends of a stock, ETF or mutual fund. Guess what pattern the Dow has……..

CURE, the 3X leveraged health care ETF continues to rocket higher.   You may recall the analysis I posted a few days ago showing that CURE rose +160% in 2013. Below is its daily chart. CURE may find some resistance at the top of its Bollinger Band, however.

Its weekly Guppy Chart paints a beautiful picture of an RWB rocket stock.

The support we mentioned on Monday held on Tuesday.   I added to TQQQ on Tuesday, but have a relatively small position.   I am still concerned that this up-trend, at 60 days, is getting close to the typical maximum length of short term up-trends.   To view the stats on duration, look at my post from a few days ago.