Stock Market Technical Indicators & Analysis
The QQQ closed (dotted line) back below all 12 averages in the daily Guppy chart.
As did the SPY.
Will the prior lows hold? For now, cash is king! The time to be invested is when the red lines are rising above the blue lines (daily RWB pattern), as was the case for the QQQ most of the time since 2017.
And the weekly Guppy chart shows very clearly that the longer term trend of the QQQ has changed, with the weekly RWB up-trend pattern gone.
When the index ETFs have overbought daily 10.4 stochastics >90, it is likely at least a small decline is coming. On the other hand, the GMI=4 and could turn Green on Tuesday. The QQQ has closed (dotted line) above all of the 12 daily Guppy chart averages. The key to the market’s trend is what happens during the next decline.
Last Thursday my QQQ short term indicator turned up. So the QQQ short term up-trend count in the GMI table below is now U-2. Given this change and that the IBD says market is in a confirmed up-trend, it is time to look for the strongest stocks hitting all-time highs (ATH). After the 2008 market debacle, I discovered GMCR as it went quickly to an ATH. So here is a list of 11 stocks that hit an ATH last week and had recent quarterly earnings up 19% or more from the prior year: $EMCI $BEAT $CINF $HELE $SHEN $ATNI $AMED $LLY $HCA $CDXS $SUI. The way I trade such stocks is to put them in a watch-list to monitor for one of my buy set-ups. The only exception is if one had a recent green line break-out (GLB). In that case I might buy it right away but sell immediately if it closes back below the green line. This weekly chart shows that LLY recently retested a GLB after breaking through its ATH peak reached in 2000. LLY is already up 60% from its low this year.
LLY has a nice Guppy chart with a weekly RWB pattern.
And a daily RWB pattern.
The GMI remains on a Red signal and is at 2 out of 6.
