58th day of $QQQ short term up-trend; GLB: $PEN $DERM $OLED $SHOP; $NVDA flashing market top? Thanks to SMT and recording

GMI5/6
GMI-26/8
T210858%

I ran a scan (Scan: 11132016ATHweeklygainhivol available free at my TC2000 club) to look for stocks from my all-time high list that were up last week on above average  weekly volume and then looked among them for those that had a GLB last week. Both PEN and DERM met these criteria. DERM has good recent earnings (+85%) but PEN does not (-233%). But PEN was an IPO in September 2015 and has more than doubled since its lows. So someone thinks it  worthy of accumulating PEN. Note last week’s volume spikes in the weekly charts of each of these stocks. These stocks merit further research.

OLED had a GLB 2 weeks ago and looks very strong to me but may be too extended for me to buy right now. It is floating way above its 4 week average (red dotted line). I will wait patiently for an entry.

But SHOP had a GLB in the first week of January.  I missed seeing my TC2000 alert and thought I had missed the break-out. I should have bought it on one of the subsequent bounces off of its rising 4 week average.

The weakening of the market leader NVDA,is perhaps flashing a warning of a tired bull. Note the heavy volume down weeks (red spikes) and that for 6 of the last 10 weeks NVDA closed down. Double top?

The GMI is at 5 (of 6), because there were fewer than 100 new highs (87) on Friday. The GMI-2 is at 6 (of 8) with its two most sensitive components having turned negative. I am concerned that the analysts do not appear to fear a rate hike in March. When the pundits start to think that the Fed’s raising rates does not matter, the market often contradicts them.

 

Last Thursday I presented a lecture before the local Society of Market Technicians. A gentleman came up to me and gave me a gift for my webmaster son in gratitude for his helping me to run this site. While I, unfortunately, did not take his name, my son sends his warmest thanks. SMT will be posting a recording of my talk for members on their site.

 

Too many failed break-outs; GLB: $VAC $OLED $SP

GMI6/6
GMI-27/8
T210861%

One of the signals of a possibly weakening market is that stocks that have broken out fail and return below their break-out points. Among the stocks that did so recently are PJC, AMZN, GS and WB. And while it was not a GLB to an ATH, TSLA also faltered last week. Sure there are still plenty of successful break-outs, but we need to heed when the leaders can’t surge higher. I also remain concerned that the major indexes are floating above their 4 week averages. This weekly chart of SPY provides an example. The red dotted line is the 4 week average. Usually the index will return to at least kiss its 4 wk average.

Nevertheless, among the stocks that came up in my scan for stocks up on high weekly volume and that also proved to be GLB, were VAC, OLED and SP. Check out these weekly charts and their unusually high volume. All have good recent earnings and may be worthy of further research. You can run this scan (11252016……) yourself by joining my TC2000 club: www.wishingwealthblog.com/club. But we must be vigilant for failed break-outs……

The GMI remains at 6 (of 6).

 

52nd day of $QQQ short term up-trend; Market indexes extended

GMI6/6
GMI-27/8
T210863%

I learned this idea from my stock buddy, Judy. Whenever a rising stock or index floats above its rising simple 4 week average (the weekly low is well above the average), that security often times is extended and  it reverts to the average. This weekly chart of the SPY shows times in the recent past when this index ETF has become extended according to this definition. The red dotted line is the 4 week average. We may be facing a consolidation or brief pause now as DIA and QQQ are also showing this pattern.