If one had bought TQQQ at the close on October 14 when my $QQQ short term trend indicator identified a new up-trend, s/he would now have a 15.98% gain and outperformed 92% of the Nasdaq 100 stocks and 91% of the S&P500 stocks. Once again, it is clear that buying TQQQ at the beginning of a QQQ short term up-trend can be a highly profitable strategy and frees one from having to find the rare stock that will do better. The GMI turned Green on October 16, and TQQQ has advanced +12.6% since then. To trade TQQQ, which is a 3X leveraged ETF, one must also have a strategy for exiting when the trend turns down. Stay tuned….. (will post again Tuesday night)
Mark Minervini presented for three hours to my class on Friday, in-person. It was an extraordinary experience. Mark has a huge commitment to advancing financial literacy education for young people.
One of my students has produced tutorials based on my course and loaded them on youtube. Check them out here. Or search for Richard Moglen on youtube. His tweets are available at: @RichardMoglen.
Ever wonder if it pays to look at hourly charts? I have been looking at DOCU as a possible GLB (green line break-out). Below is its daily chart. It shows the stock consolidating below the green line. Note there is nothing unusual in its volume pattern the past few weeks. After the large earnings related spike in early September, volume has been declining. Note the two recent green dot buy signals.
Now look at the hourly chart. You can see 3 clear spikes in volume at the last hour each day, which I marked with arrows. Each of these spikes in buying were not visible in the daily volume charts. Clearly, some big buyers are coming in at the close to accumulate the stock. While this buying does not guarantee a break-out, it does suggest to me that a rise may be imminent.
The GMI remains Green and is at 6 (of 6).
All of these stocks have doubled from their lowest price the past year. Most are near all-time highs. This weekly chart of GNRC shows it had a GLB (green line break-out) in June; their sales may be boosted by increased purchasing of their generators during the hurricane and the current turn off of electricity in parts of California. GNRC reports earnings this week. One of my rules is to buy a GLB in a stock that has already doubled. Note that GNRC has not closed below its 10 week average (purple doted line) since the GLB. That would be a sell signal.
The GMI remains Green at 6 (of 6).
QQQ remains in a Weinstein Stage II up-trend, above its rising 30 week average (solid red line).
GMI rises to 3 (of 6) and QQQ short term down-trend may end Monday.