General Market Index (GMI) table

Next Saturday I will be offering a workshop at the local AAII. You can access information here. It has been two years since my last appearance for AAII. This presentation will differ from my previous ones because it will also focus on investing in ETFs rather than just growth stocks. As I get closer to retirement, I have become more conservative in my trading and tend to focus on index ETFs. I hope to meet many of my readers next weekend…..

QQQ, SPY and DIA remain in daily RWB up-trends. Once an RWB pattern develops it is impossible to know how long it will last. So I pyramid up and ride it until it fades. Note how often the index closes (dotted line) above all 12 averages.

The GMI remains Green at 6 (of 6).

QQQ found support at 4 week average (red dotted line)  and now 4wk>10wk>30wk, a powerful up-trend. Mutual fund end of quarter window dressing worked again. All time market highs are likely on the horizon.

When I look at my market indicators and the charts of the major indexes, I see a rising up-trend. But when I listen to CNBC commentators I hear all the reasons not to trust this market. Jim Cramer even opines the market has it wrong. But I have heard that opinions are wrong, the market never is. I suspect Cramer has got it wrong, once again. How can I not trust a market where the GMI is Green, with 6  positive components (of 6)? Or where we see a beginning daily RWB up-trend?

In the past, after a significant decline, I waited to go long until after the 30 week average turned up again. Look at this weekly chart of the QQQ. Note that the 30 week average (red solid line) is turning up, as is the 4 week average (red dotted line). Weinstein Stage II?

DIA and SPY tell the same story. Until these patterns fail, I am long this market.

I suspect falling interest rates are behind the market’s strength. Money managers have no where to go but the equity market to grow their  money.