Wishing Wealth Blog

Wednesday was the 32nd day of the current QQQQ short term up-trend.   During this up-trend, QQQ has risen 12%, QLD +25.5% and TYH +38%.   TYH beat all of the stocks I have been trading, including AAPL +20% and GOOG +31%, yet again showing that riding the 3X ultra tech ETF, TYH, during a QQQQ up-trend beats most   individual stocks. The ETF that has risen the most is CZM, China bull 3X, up +45%.

The GMI and GMI-R snapped back to their maximum values on Wednesday. NTAP (weekly chart below, click on to enlarge) is another RWB rocket stock (red short term averages well above blue longer term averages)   that hit a 52 week high   on Wednesday–I own Dec call options on it.   Earnings are due Nov 17. By the way, NTAP is on my cumulative IBD 100/ New America watch list. All of the stocks I buy have therefore already passed the IBD CAN SLIM stringent fundamental and technical criteria.

While the GMI fell to 4 (of 6) and the GMI-R, to 8 (of 10), the QQQQ remains in   long and short term up-trends.   See the weekly GMMA chart of the QQQQ below. All short term averages (red) are above the longer term averages (blue). The T2108 has fallen to 77%, now out of overbought territory, but could be signaling a move down.   I am a little defensive and will not add to positions for now. We must keep an eye on the tech leaders (GOOG, AAPL) to gauge the health of the market.   Both of these stocks remain in up-trends. The election results and the   year end rally are possible catalysts for a continuation of the up-trend.

The sell off in tech stocks Monday night after earnings were released is a warning sign, but all of my indicators remain positive and the up-trends are intact.   Still, as a trend trader I rarely get out at the top, only after the trend has reversed. It will be important to see where support comes in for the leaders. A   stock that came up in my scan Monday night is FIRE. It may be breaking from a base and starting a new RWB run, as this weekly chart shows (click on to enlarge). It also has a promising monthly chart. I have not researched it yet, but if I bought FIRE, my sell stop would be near support, around 26.89.