Stock Market Technical Indicators & Analysis
It was great to see many of you at Saturday’s AAII workshop. Friday was 47th day of current $QQQ short term up-trend. IBD still sees “uptrend under pressure.”
This weekly chart shows that QQQ remains in a strong Stage 2 up-trend, however. Click on chart to enlarge.
Next Saturday, Dr. Alan Ellman and I will be doing an AAII work-shop in Virginia. I hope to see you there.
Meanwhile, GMI is at 5 (of 6) and still on a Buy signal.
All of my GMI indicators remain positive. Since the GMI Buy signal on 4/22, the QQQ has advanced +9.3%, the SPY is up +5.5% and the DIA is up +3.4%. The QQQ leveraged ETF’s are up: QLD +19.4% and TQQQ +30.5%. One of the best ETF performers has been SOXL, up +34.5%. During this same time period, AAPL is up +23.8%. The TQQQ beat all Nasdaq 100 stocks but VRTX, which was up +44.7%. Anyone hold VRTX since April 22? Once again I see the value of buying and holding the 3X leveraged ETF during a GMI identified up-trend, rather than trying to identify in advance the rare individual stock that will outperform it.
This daily chart of the QQQ shows that its pattern from the past week resembles one from last May (the areas in the green ovals). Note that the 15.2 Bollinger Bands (BB) constricted and then broke out into an expansion with the upper and lower bands moving apart. The QQQ is currently climbing its rising upper BB. In May, this pattern lasted 4 days before the index leveled off for about one week. On Thursday, the current BB expansion completed its 5th day with QQQ climbing its upper BB. Tuesday’s and Thursday’s closes were outside the BB, often a sign of being extended. Note in this chart that the QQQ has closed above its top BB only three times. I would be surprised to see the QQQ close outside its top BB again on Monday…….
The GMI remains at 6 (of 6):
