Month: July 2012

The indexes held on Wednesday and the short term up-trend looks robust.   The 30 day average has turned up for the major indexes, a very positive sign. Since the first day of this up-trend on June 18, the QQQ has advanced only +1.3%, and the QLD has advanced +2.1%.   Thus the indexes have not climbed much. However, it looks like these index ETF’s are starting to accelerate. I am adding to my position in QLD. A lot of stocks are breaking out of bases.   Check out this monthly chart of VMI, which has broken to an all-time high from a multi-year base. They have an earnings call scheduled for next week.

It looks like critical support levels held on Tuesday.   I bought a little QLD and will add to the position if the QQQ continues to advance.

The QQQ closed on Monday just below its 30 week average, making the GMI lose one point.   I am watching this relationship very closely.   The tech stocks underperformed the other stocks on Monday.   The SPY, but not the DIA,   remained above its 30 week average. Time to be very cautious, but I have learned to wait for a definitive signal and not to act in anticipation of one. The market can turn on a dime.

I am looking forward to presenting my AAII workshop this Saturday. There is still time to sign up. (If link does not work, just Google:   AAII Dr. Wish)