GMI: +6; VTIV- cup with handle?

The GMI cllimbed to a maximum +6 on Tuesday as the QQQQ regained strength.  It looks like we may not get a head and shoulders top in that index.  Gmi0314 There were 250 new 52 week highs and 62% of stocks closed above their 10 week averages.  33% of the 4,000 stocks in my universe are now in a short term up trend and 33% are within 5% of a new high.  Between 83-88% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes climbed on Tuesday.  Tuesday was the first day in the new short term up trend in the QQQQ……..

One of the more reliable technical patterns for growth stocks is the cup with handle pattern made famous by William O’Neil, publisher of IBD.  A few weeks ago I bought AX (now NYX) on a cup with handle break out.  Well today I bought VTIV because it also looks like a cup with handle break out.  Vtiv_2 Note the prior up trend before the cup was formed,  and the huge volume this week as the pivot point at the top of the handle was exceeded.  VTIV had a recent quarterly increase in earnings of + 157% and a PE around 16.  Given this technical pattern and the great fundamentals, I thought it was worth taking a chance on VTIV.  Time will tell if this represents a major buying opportunity.

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