Blog Post: Day 8 of $QQQ short term up-trend; part of the market is showing signs of strength; see $DIA and $SPY in daily RWB up-trends, leaving $QQQ behind, read my rationale…

@ 9:24 pm
GMI5/6
GMI-24/9
T210873%

It has been my impression that after a scary market decline, people are more risk adverse and first seek out the big name large cap stocks to invest in. Once they profit from these trades they feel more comfortable buying the more risky growth stocks. This may be why the DIA and SPY are looking much stronger than QQQ. See below the daily adapted GMMA charts for each. DIA and SPY have developed RWB up-trends.

Today, I therefore started to slowly reinvest my university retirement funds in mutual funds that track the SPY. The troubling news about inflation and a possible future recession may already be baked into the market. It is very difficult to stay scared of the same issues for a long time. If I am proved wrong about the market’s trend I will simply exit again–I am a nimble chicken.

Blog Post: Day 7 of $QQQ short term up-trend; 120 US new highs and 246 lows; $STLD retakes green line and hits ATH, see daily chart, also of $TMDX

@ 9:16 pm
GMI5/6
GMI-24/9
T210870%

$STLD has been holding up well after its GLB (green line break-out) last week. Note how it is tracking its 8 exponential moving average (dotted line). Note the bounce up off of that average on Monday. If I bought it, I would place my stop below Monday’s low or sell if it closes below the green line. $STLD came up in my TC2000 scan of my IBD/MS watchlist for stocks that are near an ATH, have a rising 8 EMA above the 21 EMA for at least 7 consecutive days, and bounced up off of the 8 EMA. Another stock that came up was $TMDX. Others were: PSN, RJF, VMI, GPC, FICO and AIT. Check them out.

Blog Post: Day 6 of $QQQ short term up-trend within a longer term down-trend; Critical week coming up for $QQQ, which is between the rising 4 wk avg and the declining 30 wk avg, see weekly chart

@ 5:19 pm
GMI5/6
GMI-24/9
T210871%

The 4 wk avg is the pink dotted line and the 30 wk avg is the red solid line. Note that last week QQQ was sandwiched in between these two averages. The rising 4 wk avg above the 10 wk avg (purple dotted line) is a positive sign. A close this week above the 30 week could be a further sign of strength, although such a pattern failed to hold last August. On the other hand, a close below the 4 wk would suggest further weakness to come. Stay tuned…..

The GMI registers 5, of 6, and remains on a Green signal.