Feared October is upon us

GMI3/6
GMI-21/8
T210861%

I have seen a lot of markets fall in October and sometimes form major bottoms. The current market has been extremely difficult to trade with all of its gyrations. I am almost totally in cash in my trading accounts. The GMI signal could turn Red with a few weak days next week. My short term trend for the QQQ might turn down Monday. The QQQ is weaker than the SPY and DIA and is now below its critical 10 week average. This is the time to be on the sidelines and to wait for a definitive trend to develop.

 

GMI= 6 (of 6) Time to look for GLBs: $OLED and 10 week bounces above green line $COUP

GMI6/6
GMI-26/8
T210849%

A set up I like is when a stocks breaks above its green line top (GLB) and on a weekly chart has just bounced up above its 10 week average. OLED is such an example. Dotted line= 10 week average.

 

I also like a 10 week bounce to a new high on a stock that is above its last green line top. COUP is an example of this set up.

If I buy these set ups I sell if it closes back below its 10 week average or the weekly low of the bounce.

With the  GMI  strong, it is time to look for GLBs.

 

Schizoid market–GMI moves to 4 but $QQQ is at short term resistance

GMI4/6
GMI-25/8
T210838%

This is a schizoid market. My longer term indicator, the GMI, is at 4 and could turn Green with another day above 3. And the QQQ remains in a longer term Stage II up-trend. But my short term trend indicator for the QQQ is still down and in its 21st day (D-21). On Friday it looked like the QQQ was breaking through resistance, but it closed back below its important 30 day average. With futures down tonight, the indexes may slide at the open. But let’s give it time to discover whether the short term trend is about to close up. Note that September is historically the worst month for the market.

The solid red line is the 30 day moving average. Note Thursday’s green dot signal. A close above the 30 day average would be a bullish signal for me.