Blog Post: Day 7 of $QQQ short term up-trend; 69 US new highs and 81 lows; $SPY is back below its 10 week average and $QQQ is just above its; Big week for $ORCL coming up, see weekly chart
ORCL had a GLB (green line break-out) to an ATH (all-time high) in June on above average volume. It has then consolidated for 12 weeks. On Monday it will report earnings and a rise above 127.54 with above average volume to an ATH would be worth monitoring. ORCL has already doubled its yearly low and MarketSmith indicates it has a comp rating=95 and RS=96. See weekly chart below. Two weeks ago ORCL bounced up off of its 10 week average (purple dotted line). Note that its 4wk avg>10 wk avg >30 wk avg, a sign of a powerful Stage 2 up-trend. When I miss a GLB, I may look to buy after a bounce up off of the 10 week or 4wk average. Study this chart for these set-ups. A green bar on this chart shows a bounce up off of a rising 4 week average that is also above its 10 week average which is above its 30 week average (30 week average is solid red line).
Blog Post: Day 6 of $QQQ short term up-trend; 52 US new highs and 106 lows; 2 companies with weight loss drugs hit ATHs again, $LLY, $NVO, see daily charts
If their drugs continue to help people to lose weight, LLY and NVO could continue to gain. The risk is that any finding suggesting that these drugs designed for diabetes turn out to produce other harms could rapidly deflate these shares. For now, it is onward and upward for LLY and NVO. Note the GLB in August by NVO on huge volume. LLY had a GLB in April. Both stocks have almost doubled their lows the past year. Their chart patterns are almost identical. The late William O’Neil made a fortune buying Syntex, the developer of birth control pills. Buying disruptive technology can work! NVO has a MarketSmith comp rating=99 and LLY=98.
