Stock Market Technical Indicators & Analysis
I hold some QLD and I bought some ALXN. ALXN may have had a cup with handle break-out on Thursday on high volume. Note the pivot point at the top of the handle, designated by a horizontal line. Click on chart to enlarge. ALXN is at an all time high. Here is a good discussion of the company’s products.
With the new short term up-trend now 5 days old, I am slowly wading into QLD. Other positive signs include the GMI-2 climbing to 4, and the fact that the latest Investors Intelligence poll shows more bearish advisers than bullish advisers. This pattern rarely occurs. IBD discusses the recent history of this indicator on page 1 in “The Big Picture” column. When advisers are bearish, it may indicate we are near the bottom of a decline. I am content to wade slowly into this market in my more speculative accounts. Since my indicators are most sensitive to the QQQ, I prefer to buy the QLD leveraged ETF which I described yesterday.
I have found that if the a new QQQ short term up-trend lasts 5 days, it often will continue for more days. I am very slowly wading into this up-trend with a small purchase of QLD, the leveraged bullish ETF that is designed to rise (or fall) twice as much as the QQQ. If the up-trend continues, I will add to my position. If it fails, I will quickly exit. I know the longer term trend remains down, but the shorter term trend, by definition, turns up before the longer term trend. I remain in money market funds in my university pension.