Another day with the GMI above 3 would cause me to issue a Buy signal. Let’s see what Tuesday brings.
13th day of QQQ short term down-trend, is bounce over? INVN–RWB stock on the move
The GMI remains on a Sell signal since 6/21. IBD still sees the market in a correction. It has been 13 days since my QQQ short term trend indicator turned down. The last time we had a longer short term down-trend in the QQQ was the one that lasted 33 days and ended last November. No one knows how long this down-trend will last, or if the longer term trend will turn down. With the second quarter mutual fund window dressing period now over, it remains to be seen if the recent bounce is over. I suspect it may be, although the Worden T2108 Indicator did fall mid-week to a low of 13.1%, a very oversold level where the bottom of a decline sometimes occurs. T2000 now computes T2108 throughout the trading day, so I can get intraday readings for T2108, instead of just the daily closes. Even AAPL bounced on Friday, a sign that even the weakest stocks may have finally participated in the rebound. If the decline resumes on Monday, it could be rather steep. I should be ready to respond, but must not anticipate a move that may not materialize. I am a trend follower……..
Meanwhile, INVN, another stock that my wise stock buddy, Judy, likes (and I own) had a high volume advance on Friday. INVN has exciting motion sensor technology that is important to smart phones and rumors are flying whether their products will be contained in a possible new, cheaper iPhone. Look at this RWB daily Guppy chart with its beautiful high up-volume (green) spikes. Somebody big is buying.
12th day of QQQ short term down-trend; IRBT- green line break-out
We are just about through with the end of second quarter mutual fund window dressing. Next week will tell whether we have a bottom or will need to re-test the recent lows. After 4 days down, the QQQ has retraced about 50% of the decline on very low trading volume. I therefore think we will go back down next week, but it is better to wait to see what Mr. Market intends.
Meanwhile, XONE performed beautifully on Thursday, up +3.7%. Another stock that Judy likes that I own, RKUS, also showed life, up +11%. She also recently mentioned that she likes IRBT, which broke out of a green line top on Thursday. See this beautiful monthly chart.
