General Market Index (GMI) table

The $QQQ short term up-trend could reverse down Monday with a weak day–after only 2 days of an up-trend! The prior short term down-trend lasted only 3 days.   This is a schizoid market. The GMI is at 6 (of 6) but the more sensitive GMI2 is at 3 (of 8).   This week may tell the story of whether we will have the June swoon. I have reduced my long positions in my trading accounts. I remain a chicken…..

But I am always looking for strong stocks in case the market strengthens. I am keeping an eye on LOGM, which may have finished consolidating Friday after its big gap up on 4/29. LOGM is another stock that Judy has talked to me about.

SYNA is another stock I am watching after its recent green line break-out to an all-time high.

I am very interested in stocks that come public, form a base and then break to new highs. CYBR is getting close to breaking out. It is close to a green line break-out. It may even be completing a cup and handle base, as seen in this weekly chart. With so many hacking events hitting the news, it may mean good business for cyber-security firms. Judy has been talking about CYBR for some time.

As an alternative to single stocks, there is a new ETF for cyber-security firms, HACK. HACK had a strong week last week.

The GMI remains strong and the longer term up-trend remains intact. But note that the SPY has closed below its 10 week average. Tech stocks are outperforming. Will SPY or QQQ lead the market?

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).