3rd day of $QQQ short term down-trend


This market is teetering on the edge.   I have a few long positions which I have hedged with some call options on QID, just in case the QQQ falls off the cliff. This daily chart of SPY (S&P 500 index ETF) shows a lot of technical weakness.   Note the high volume down days illustrated by the red spikes. SPY is now below its critical 50 day average. Six of the last eight trading days have shown declines.


I counted 63 new highs and 318 new lows among all U.S. stocks on Tuesday.   Only 29% of all stocks rose. And now we are in that wonderful month of October! With Ebola on the horizon, this market could get sick.

2nd day of $QQQ short term down-trend; $BSTC,$ESPR: green line break-out


I am still not clear whether this new down-trend will last.   If it gets past 5 days, I will be more confident. Almost one half (41%) of the new short term down-trends since 2006 have lasted 5 days or less. Bio-techs remain strong, however. Here is a bio-tech, BSTC, that came to my attention when it broke its green line top on unusually high volume.   I have a small position in BSTC. Check out its daily chart. BSTC has held its own through all of the recent market volatility.


I also nibbled at ESPR. ESPR will likely consolidate after this huge beak-out.


Both of these stocks came to my attention through my TC2000 high volume up bio-tech scan.