Blog Post: Social Media abuzz about Friday’s bounce off of 50 day average; Major indexes also bounced off of lower Bollinger Band and had a blue dot signal, see daily chart of $QQQ and analysis; This week we see whether the bounce can hold. GMI=3

@ 7:56 pm
GMI3/6
GMI-22/9
T210836%

Either Friday’s bounce will hold or it won’t or it will fake us all out. The fact that QQQ (and DIA and SPY) all bounced their 50 day averages, their lower Bollinger Bands and had Blue dot signals suggests the bounce may hold. At least technical analysts will think so. But I must react, rather than predict or anticipate. If QQQ holds, I may buy some TQQQ. If it fails, I may buy some SQQQ. Or I may sit safely on the sidelines. The Blue Dot of Happiness oversold indicator is explained in my recent TraderLion Conference presentation on Day 6. These days I find it better to hold off pulling the trigger until late in the day when I know where an equity is likely to close. Otherwise I get whipsawed by the moves early in the day.

Screenshot

The GMI= 3 and the more sensitive GMI2=2. Another weak day for QQQ will end the $QQQ short term up-trend at day 54 and reduce the GMI to 2.

Screenshot

 

 

Blog Post: Technical problems prevented last night’s post. I am mainly in cash with some $SQQQ in my trading accounts. $QQQ failed to hold 4wk avg and is now sitting on critical 10 wk avg, see weekly chart. Short term up-trend in jeopardy. Last night’s GMI stats shown.

@ 1:13 pm
GMI4/6
GMI-23/9
T210831%

If 10 week fails to hold (blue dots) , the next major support is the 30 wk average (solid red line) and/or prior green line. A failure to hold the 10 week will be a major sign of weakness. My trading accounts are in cash with a little position in SQQQ. If the QQQ short term up-trend ends next week I will accumulate SQQQ. The growing number of daily new lows and the many failures of leading tech stocks to rally off of good earnings were major signs of weakness. No one knows when and where this decline will end. We must contain losses. Tonight’s  GMI will be 3 or less.

Screenshot

Blog Post: Day 52 of $QQQ short term up-trend: GMI back to 6. We want to buy a stock or ETF when it has had a GLB, to ATHs. See monthly chart example of $ARKK.

@ 9:22 pm
GMI6/6
GMI-26/9
T210833%

A green line is drawn on a monthly chart at the highest price bar (ATH) that is not exceeded for at least 3 months (bars). It shows a stock strong enough to reach an ATH that then rests for at least 3 months. When it breaks out to a new ATH (green line breakout, GLB) it can signal the beginning of a major move. A stock that reached an ATH and then declines so a new green line can be drawn needs to overcome all of the sellers who  bought at higher prices (equals overhead supply).  It may never do so. It therefore is a sign of strength when a stock can have a GLB to a new ATH. See the successful GLB tracker on this blog for a few examples of stocks that rose after a GLB.

Screenshot