I reversed my positions and began going long. It looks like the recent 3 day decline was a just a fake-out. A lot of stocks are breaking out. I must not marry a market scenario. I must be nimble and go with a likely change in trend. I am buying some QLD and will add to it if it rises. I also bought some DDD and PCYC. No guarantees. I will add slowly if a stock acts as predicted. Will this bounce last???
2nd day of QQQ short term up-trend; IOC breaks out
The GMI and GMI-2 are each 2 (of 6). With Thursday’s rebound, the new short term down-trend may not hold. I am laregly out of the market waiting for a significant trend to develop. IBD changed its outlook again and now sees the market in a confirmed up-trend. This has been a very difficult market to figure out. Meanwhile note this monthly green line chart of IOC hitting a new high out of a two year base on Thursday. It reports earnings soon and has a very high short interest. I am researching it. Will it hold?
New QQQ short term down-trend; GMI flashes “sell” signal
The QQQ short term up-trend has ended after 26 days. I am most confident of a change in short term trend once it has persisted for 5 days. The GMI has also flashed a Sell signal and IBD sees the market in a correction. So I am mainly in cash with a small position in SQQQ, the 3X leveraged inverse QQQ ETF. It is designed to rise 3X as much as the QQQ declines. Note this weekly chart of the QQQ shows that this index ETF has closed below its 30 week average (red line). The 10 week average (blue dotted line) is also below the 30 week average, another sign of weakness. Click on chart to enlarge. It remains to be seen whether the QQQ will quickly retake its 30 week average as it has several times in the past 10 weeks. But it is better for me and my money to be safe than sorry.
