NEVER hold a stock in Stage 4! Anytime a stock closes below its 30 week average (red solid line) I exit.
Blog Post: Day 5 of $QQQ short term down-trend; 99 new US highs and 529 lows; Cash is a nice position, see weekly chart of $QQQ
Watched Fast Money tonight and all pundits were very bearish. They pretend they have been telling people to be bearish all year. Of course they were not. They continued to pitch stocks to buy when people should be on the sidelines. There will be plenty of time to go long once the trend really changes. Until then, enjoy life and the holidays. This is the weekly chart of QQQ, clearly in a Stage 4 down-trend. A break below the October low may create the panic selling that creates a bottom.
Blog Post: Day 3 of $QQQ short term down-trend; 102 new US yearly highs and 483 lows, 3 ATHs; $WFRD at ATH and showing strength after recent GLB, see daily chart
One of the only stocks hitting repeated ATHs is WFRD. It has great fundamentals, going from no earnings in 2021 to an estimated +.22 in 2022 and 3.00 in 2023. It is also in the oil and gas drilling support business. It has a comp rating=96 and RS=98, according to MarketSmith. WFRD has emerged from a multi-week consolidation after its GLB last October. Look at the recent above average volume and the black dot signals (bouncing from an oversold daily 10.1 stochastic). Someone is buying it. Remember, though, break-outs tend to fail in this market down-trend.
