I went to cash in my trading account yesterday. I want to see if QQQ holds today. We are approaching a traditionally weak period in the market, especially after 2nd quarter earnings are out. GMI has declined to 4 (of 6).
Blog post: 34th day of $QQQ short term up-trend; Small cap stocks in trouble? Weekly chart of $IWM shows Stage IV top could be developing; other warning signs I see
$IWM is now below its critical 30 week average–Stage IV on the horizon? Green line top is now in place as advance has stalled. I am also a little concerned by the fact that T2108 is only at 38% when the indexes are setting records. This means that only 38% of the NYSE stocks are above their 40 day simple moving averages. The big stocks heavy weighted in the indexes are stronger and may be making the indexes mask weakness in many other stocks. After earnings season we head to the fall and September, the weakest month for the market. This is not the time for me to be making new risky buys. I am looking to cut back now even though my charts are still strong. Remember, I am a chicken…..
Blog post: 33rd day of $QQQ short term up-trend; $QQQ remains in a daily RWB up-trend; so does $AAPL
RWB up-trend means that all 6 shorter term averages (red) are rising above 6 longer term averages (blue) with a white space between them. The black dotted line is the daily close. The first sign of weakness occurs when the dotted line goes below the red lines, leading them lower. This is a modified GMMA chart, invented by Daryl Guppy.
AAPL shows a similar pattern and a recent GLB to ATH.
