Stock Market Technical Indicators & Analysis
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.
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.
My attempts to nibble at a few things the past few weeks have not worked out. Break-outs have been failing. During past significant market declines I waited to ge back in until the key indexes climbed above their 30 week averages and the average curved up. There was plenty of time to profit once that happened. I leave it to the day traders and gamblers to try to catch brief bounces. I love this quote from the great Nicolas Darvas:
I think this says it all. I will, of course, alert my readers to when the storm clouds have dissipated. With the GMI at 0 (of 6) and Red, I see no reason to attempt to go long equities now. Happy Holidays to all!!!!!
