General Market Index (GMI) table

14th day of $QQQ short term up-trend

@ 6:27 am
GMI5/6
GMI-26/9
T210837%

Some signs of short term weakening are appearing. First, a lot of my holdings were rapidly climbing. When that happens the market is often near a short term sell-off. Second, I find that the QQQ and AAPL are up against resistance and thus more likely to retreat than to advance. Lastly, I have noticed that the market tends to be strong at the end of the month and then weak at the beginning of the new month. I therefore took some money off of the table on Friday afternoon. I do not want to give back a lot of my recent profits.

The GMI has now weakened a little to 5 (of 6) and the more sensitive GMI2 is at 6 (of 8).

 

GMI05292015

10th day of $QQQ short term up-trend; $AAPL leading market higher; 5 GLB stocks; GLB in IPOs

@ 10:21 pm
GMI5/6
GMI-27/9
T210850%

With AAPL showing strength, it looks like this market will move higher. Check out AAPL’s daily chart.

AAPL05222015And its strong RWB pattern.

AAPLGMMA05252015

Stocks are breaking through their green line tops to all-time highs. Like SYNA

SYNS05222015

And IMAX

IMAX05222015And MGA

MGA05222015And TCX

TCX05222015And CTRP

CTRP05222015I like to hold stocks that break up through their green line tops (GLB) as long as they stay above their green lines.

A green line top occurs when a stock reaches an all-time high that it does not exceed for at least 3 months. By definition, an IPO may not have existed long enough to rest for 3 months. I rediscovered what Jesse Livermore once wrote. If an IPO opens strong and then recedes from its peak for a few weeks, buy it when it breaks to a new high.   As Jesse said, it means something has changed. FB did this quite a while ago, although it took it almost two years until 2013 (monthly chart) to hit a new high.

FB05222015SHAK flashed the buy signal much more quickly, after 12 weeks (weekly chart). It pays to watch the IPOs for this truncated GLB pattern.

SHAK05222015

The GMI remains at 6 (of 6).

GMI05222015

 

5th day of $QQQ short term up-trend; Death of the 3D printing fad-$DDD, $SSYS

@ 10:30 pm
GMI6/6
GMI-28/9
T210853%

All of my GMI and GMI-2 indicators are positive. This market acts like it wants to continue the longer term up-trend.

GMI05152015I thought you might like to see the value of the GMMA for tracking the life cycle of a growth stock. DDD remained in an RWB up-trend for most of the period from 2012-2013. In May of 2014 the RWB pattern ended and changed into a bearish BWR pattern. Every stock, ETF and mutual fund owner should draw the GMMA chart and see whether the pattern is RWB or BWR.

DDDguppy05172015SSYS, another 3D printing stock showed a similar pattern. Note the Head and Shoulders top (S/H/S) which I identified long ago.

SSYSgmma05172015I only hold stocks in a bullish RWB pattern. Ride the trend…..

By the way, look at the strong RWB pattern in the SPY (and DIA and QQQ). The media world is filled with hysterical “chicken littles” screaming that the sky is falling….

SPYgmma05172015