General Market Index (GMI) table

The daily GMMA chart of the QQQ shows the strong current up-trend in this index ETF.   The arrows show recent GMI Buy and Sell signals.   Note how the short term averages (red lines) constrict when a pause occurs. As long as the shorter term averages are rising above the longer term averages (blue) the up-trend is intact.   This is the RWB rocket pattern I like to see on daily and weekly GMMA charts. The black dotted line is a moving average of 1, to show the closing price of the QQQ each day. (My color scheme for the GMMA differs from that used by its creator, Daryl Guppy. )…….

I had noticed the strong up-trend in BITA over the past year (it has tripled!) and wished I had traded it.   One of my students alerted me to a nice move in the stock on Friday and I bought some.   It looks to me like BITA has broken out of a classic cup and handle pattern. I drew in the pivot point at the high point of the handle. Note the recent all-time high and the huge trading volume on Friday.   It remains to be seen whether this break-out will hold. (If it does not, I will exit quickly.) IBD has a nice article about BITA, which it published after it reported earnings last week. At least I will not have to worry about a bad earnings report!

This weekly GMMA chart of BITA shows that it has been in a RWB rocket pattern since early 2013 and had a green line break-out (GLB) to an all-time high in mid-2013.   How did I miss such a great move?

Meanwhile the GMI remains on a Buy signal with all six components positive.

Here are weekly charts of two stocks that are recent GLB that hit new all-time highs last week.

Meanwhile, the GMI remains at 6 (of 6).

I ran my TC2000 scan for stocks with good earnings that hit a 52 week high on Friday. The list is posted to the right. There were 15 stocks. Five have a flag to the left, indicating they appear in one of my IBD watch lists. All of these but DTSI and FARM, are trading above a recent green line break-out (GLB) at an all-time high. I own several of these. One stock, MNST, had a huge volume break-out, consolidated, and is now moving up. Check out its weekly chart below.

Some strong stocks do not meet all of this scan’s criteria.   For example, NKE looks good but has not doubled in the past year. NKE recently had a nice GLB, as shown in this weekly chart…….

Friday was the 6th day of the new QQQ short term up-trend. QQQ short term up-trends can often   last for several months. Given that we are in the strong seasonal period for the market, I would not be surprised if this up-trend lasts into January. Eventually, higher interest rates will kill this market.   So I am watching rates very carefully. The GMI is at 6 (of 6) and all but one of the GMI-2 components are positive.