GS had a strong week and closed near its weekly high and at a n ATH. WGB occurs when it retakes its 4 wk average and 4wk>10wk>30wk..
General Market Index (GMI) table
Blog post: 46th day of $QQQ short term up-trend; GLB: $DXCM, $MITK, $PKI, $AAPL on the precipice; Government shut down in October?
I see few media articles discussing a government shut down in October. Here is an exception. While a lifting of the debt limit may eventually be passed by Democrats as part of a reconciliation bill, I would not rule out hysteria about it until then. This could add to market volatility the next few months along with a resurgent pandemic. For all of these reasons and the “air pockets” in leading stocks last week I am getting very defensive in my trading accounts……
Still, some stocks are strong. For example, this weekly chart shows that DXCM broke out with a GLB last week.
MITK had a beautiful GLB and cup and handle pattern.
And PKI followed through on its recent GLB.
But this daily chart shows AAPL sitting on its green line. If it closes back below it will be a significant omen for the market.
Meanwhile, the GMI remains Green and at 6 (of 6).
Blog post: The power of the GLB: $XPEL, $MSFT, $AAPL, $AMZN, $NET, $COST, $QQQ……..
Most people are afraid to buy stocks breaking out to an all-time high (ATH) but still say they want to jump on a rocket stock heading towards the moon! Go figure. Buying a GLB (green line break-out) can lead to huge gains. I draw a green line on a monthly chart at the ATH bar after it is not surpassed for at least 3 months. The concept is to buy a strong stock that has rested and then breaks out again. Not all GLBs work. I sell immediately if the stock closes back below the green line and buy it back if it retakes it. Here are some examples, all weekly charts. You may have heard of some of these and there are many more…….
The GMI is at 6 (of 6). All components are positive. Be careful with a Fed meeting this week and the possibility of a delay in raising the U.S. debt limit.
