The QQQQ up-trend continues and all of my indicators are now positive, with the GMI at 6 (of 6) and the GMI-R 10 (of 10). The QQQQ and SPY indexes have now closed above their critical 10 week averages for the second straight week. In addition, 95% of the Nasdaq 100 stocks closed with their MACD above its signal line, a sign of short term strength. The Worden T2108 indicator is now 73%, which is near overbought levels, but it can remain there for months. With options expiration coming at the end of this week and the end of the 3rd quarter with mutual fund window dressing at the end of the month, we could see a nice rally. I know everyone fears the market in October, so we may get some turbulence in October before earnings come out. Still, I am accumulating stocks , given the strong GMI reading. In addition, the GMMA weekly chart of the QQQQ (click on chart to enlarge) shows the averages holding their own. The shorter term weekly averages (in black) appear to be slowly rebounding off of the longer term averages (in red). Check out the column to the right to see the types of stocks I am trading.
The GMI is back to 6 (of 6) for the first time since August 10th. With so many great stocks breaking out, maybe this rally will continue. Thursday was the 3rd day of the current QQQQ short term up-trend. I am gradually going long on individual stocks and on the ultra long QQQQ ETF, QLD. QLD aims to move 2x as much as the QQQQ. This leverage can, of course, cut both ways. I posted about TTM a while ago. It looks to me like it may be getting ready to break to new highs.
The GMI remains at 5 (of 6) but the longer term trend for the QQQQ has just turned up. The GMI did not move to 6 because one of its components turned negative (successful new high index). Nevertheless this market is starting to look strong. So many stocks that I follow or own are now moving up: NTAP, AAPL, APKT, PANL, VRX, ARMH, PPO, AMT, TTM, VIT, NFLX, GMCR. So I am accumulating QLD (the ultra long QQQQ ETF) and waiting to see if this new up-trend can hold. Just in case, I am wading in slowly.
Well, the GMI is now 5 and the GMI-R is 9. Tuesday was the first day of the new QQQQ short term up-trend. However, I will be much more confident of this up-trend if it can get past 5 days. A lot of growth stocks are breaking out. The leaders AAPL and NFLX resisted the down-trend, a good sign. I am slowly going long, because the QQQQ remains in a longer term (weekly) down-trend.