Stock Market Technical Indicators & Analysis
When the shorter averages (red) decline below the longer term averages (blue) leaving a white space between them, it is a daily BWR down-trend. I will not hold long positions except money market funds or treasury ETFs (TBIL). Dotted line shows daily closes. This is my modified Guppy chart based on Daryl Guppy’s GMMA indicator. Guppy’s book is listed on this blog.
Note what a daily RWB up-trend looked like beginning last May. Ignore the news and opinions and let the market guide our trading.
It is possible to find some new leaders to trade. But with most of the former leaders weakening, it is best for me to be mainly in cash. For me, a rising launched rocket is one that climbs continually above its rising 5 day EMA. I use TC2000 to find stocks that have had a GLB, are hitting all-time highs, and that are finding support at their rising 5 day EMA. When the market straightens out I will show some of these scans and how I trade them. There is a tab on this blog with a discount coupon for TC2000.
I have found that the 5 day exponential moving average, XAVG 5, is an excellent indicator of a climbing rocket. I I scan for stocks with a a recent GLB (green line break-out at an ATH) that are riding their XAVG 5 (purple dotted line) higher. Study these examples of SMCI and SLV and then examine how your other strong stocks have behaved with respect to this indicator. Question to ponder: Why do some stocks track a moving average so closely for long periods? Are there so many persons trading off of the same average?
The GMI is still GREEN.
