Stock Market Technical Indicators & Analysis
QQQ remains in a short term down-trend. One way to play this is to own a little SQQQ, a 3x leveraged bearish ETF, that rises when QQQ falls. But we need to be nimble because many down markets have ended in October. As the Sell in May saying says, return on Halloween. Let’s see first if last week’s bounce holds. It may present an opportunity to get into SQQQ a little lower.
Again, 3 of them, CEIX, AMR and HCC, are in the coal industry. List is sorted by current close/lowest price past 250 days. VIST is 3.4x its yearly low.
I want my students to study this weekly chart of CEIX. On September 1, my guest speaker and former student, Richard Moglen, suggested this stock as a possible rising buy and hold stock for my class to consider. I assign many of Richard’s videos to my students.
CEIX, in fact, exemplifies a number of the technical characteristics of advancing stocks that I look for. First, the 4wk avg>10wk avg>30 wk avg. It is in a Stage 2 up-trend. It also has a yellow band pattern, having also closed above its 10 week average repeatedly. It also has several weekly green bars, having bounced up off of its rising 4 week average. And most important, it is above its last green line top, reaching ATHs, and had a GLB (green line break-out) in August.
This daily chart shows that CEIX never closed below its green line after its GLB. Note the second possible entry at the black dots, designating oversold bounces.
It is pretty persuasive when many of the stocks doing well come from the same industry. Here is the list of 9, sorted by Wednesday’s close/lowest price the past year. Two of them ( APOS and AESI) are IPOs within the past year and have a “…” result. Coal is hot! Even XOM made the list!
