Blog Post: Day 10 of $QQQ short term up-trend; 66 US new highs and 113 lows and 31 ATHs; GMI declines to 3, of 6; 7 doublers at ATH and weekly chart of $EAT

@ 8:45 pm
GMI3/6
GMI-21/9
T210840%

This market is limping along. The GMI is still Green but the $QQQ short term up-trend is bearly (haha) intact. The GMI2 which contains very sensitive components is down to 1. Still, I found 7 doublers that reached an ATH on Monday. They are sorted by the last column which measures close Monday divided by the close a year ago. We must be very cautious and have tight risk controls in place.

Screenshot

EAT has been especially strong since its GLB in October. Look at this weekly chart. It has only closed below its 4 wk average (red dotted line) once since then. A strong advancing stock has 4wkavg>10wkavg>30wkavg. But EAT is floating above its 4wkavg, a sign of it being extended.

Screenshot

 

 

Blog Post: Day 8 of $QQQ short term up-trend; Since January 10, SPY is up +2.6% but equal wt RSP is up +5.5%; QQQ +3.1% but QQQE +5%. These cap weighted indexes are now masking the strength in the other stocks! Rotation has begun. Time for me to reinvest!

@ 11:18 pm
GMI5/6
GMI-24/9
T210851%

Each day large numbers of stocks have been hitting 52 week highs and all-time-highs, unlike the AI related and most other leading stocks. NVDA, MSFT and TSLA have been weighing down the cap weighted indexes.  The cap weighted indexes are now masking the progress in the other stocks. This is the exact opposite of what we had been seeing. We had seen that the few high cap stocks were driving the indexes higher and the rest of the market was not participating. So I decided tonight to compare the cap weighted and equal weighted ETFS of SPY and QQQ. My suspicions were confirmed as I specified in the title to this post. This means that it is likely safe for me to purchase strong stocks even though the major indexes do not look exceptionally strong. Mark Minervini has often said to focus on the stocks setting up and not on the indexes. So I am tiptoeing back into some of the strong stocks that are setting up. Rotation has begun and I hope these other stocks will not become extended too quickly.