Blog Post: Day 17 of $QQQ short term up-trend; 5 “yellow band” stocks that hit an ATH on Monday, see the list and a chart of $BWMN

@ 9:43 pm
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Those of you who have followed my blog or workshops (available at the tab on this blog) or have taken my course may remember the yellow band concept. These are advancing stocks that have closed each week above their 10 week averages for at least 10 consecutive weeks or more. The 10 week average is rising above the 30 week average so that one could draw a yellow band in the white space between them. These 5 stocks are yellow band stocks and reached an ATH on Monday. Only one, ALGM, is flagged, indicating its presence on my watchlist of stocks recently on a MS or IBD list. Three of them are already twice their low of the past year, see last column.

This weekly chart of BWMN illustrates the yellow band pattern. Note the recent GLB (green line break-out) and the many weekly green bars. In fact, BWMN has closed each week above its rising 4 week average (red dotted line) for 8 straight weeks, another sign of technical strength. I first wrote about BWMN after its GLB.

 

Blog Post: Day 16 of $QQQ short term up-trend; Buy $TQQQ on day 1 of this up-trend and it advanced through Friday, +29.5%, beating all but 4 of the Nasdaq 100 stocks and all but 3 of the S&P500 stocks–same incredible results again! See chart

@ 7:27 pm
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I confess I did buy some TQQQ at the beginning of the new QQQ short term up-trend (green arrow on chart) and posted about it, but allowed myself to get shaken out on 1/19  (red arrow) and did not buy back in. Not buying back in compounded my first mistake. I need to let my computer trade for me because I let myself be shaken out even though my objective rules said that the short term up-trend was still intact :-(. See the daily chart of TQQQ below.

TQQQ even beat all but 4 of the 668 stocks in my aggregate watchlist of recent IBD50 and MarketSmith Growth 250 stocks! If you search my blog on “TQQQ” you will find that I have replicated this analysis and found similar results for years. Maybe it just does not pay for me to try to find winning individual stocks when I can just buy the 3x leveraged ETF, TQQQ. By the way, I also found 16 leveraged ETFs that beat TQQQ!  TSLL, CONL and KOLD were each up over 80%! Remember, however, these leveraged ETFs fall much faster than the underlying index or security when the trend reverses down, so you need a really good exit strategy, especially one better than mine!

 

The GMI signal remains Green at 6 (of 6). It flashed Green at the close on January 13. I post my QQQ short term trend count in the table below and on each almost daily blog post.

 

 

Blog Post: Day 15 of $QQQ short term up-trend; watching $ACLX for possible break-out from Minervini VCP, see chart

@ 10:25 pm
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One of the patterns that I learned at Mark Minervini’s invaluable workshop is that of volatility contraction, or VCP. Before I learned of VCP, I would get out of a stock that had been rising when it went flat and all of the volume died out. I would get bored and think the rise was over. Little did I know that such a pattern can be a set-up for a large gain. You can read the best introduction to VCP through Minervini’s books. Minervini describes VCP as  “a contraction of volatility accompanied by specific areas in the base structure where volume contracts significantly.” (Trade Like a Stock Market Wizard, p. 198, listed at the bottom of this blog.) Price volatility contracts from the left to the right and volume drys up after which a break-out may occur.

I think ACLX is in such a pattern. It had a huge gap up to an ATH in a GLB and has since consolidated. Note the reduced volume recently. I am waiting to see if ACLX will break out of this pattern on a burst of trading volume and have put in an alert in TC2000. ACLX is testing a promising anti-cancer treatment.