Blog Post: Day 11 of $QQQ short term up-trend; MACD hourly histograms reveal weakening in $QQQ, $SPY and $DIA
One of the ways I use the 12/26/9 MACD indicator is to focus on the hourly histograms. Study this hourly chart to learn how to use this indicator. When the histograms decline and turn RED, it can signal weakness. The hourly histogram is a very short term indicator and signals small moves. Note the weakening momentum now even as the price has been climbing. Similar negative divergence occurred a week ago. Note also how the rising red histogram bars foreshadowed the recent bounce. Similar patterns of negative divergence are also evident in SPY and DIA where the histograms have also turned red.
Day 10 of $QQQ short term up-trend, since Day 1 QQQ (+9%), TQQQ +27.7%, beating all Nasdaq100 stocks and all but 2 S&P500 stocks, ENPH (+37.7%) and SEDG (+28.3%)
If I had bought TQQQ on Day 1 of the QQQ short term up-trend, I would have beaten almost all stocks. I have demonstrated this strategy many times. The key is to buy TQQQ on Day 1 even though the new up-trend is most suspect. I have also written that a change in the short term trend trend is most reliable after it reaches Day 5. The key to this strategy is to slowly accumulate the triple leveraged ETF. I hope some of my readers have done so. The GMI remains Green. The longer term trend is still down, however.
