QCOR break-out fails; GMI-2 falls to 2; Stage 2 up-trend in doubt, raising cash


When a break-out growth stock like QCOR can reverse so quickly (see daily chart below), down 21.8% on Tuesday, it is often a   sign of future market weakness.   I sold my QCOR at a loss on Tuesday. CSTR, CMI, CAT, BIDU, DDD and ISRG also had declines, although   smaller than QCOR’s.

The GMI-2 fell to 2 and IBD now considers the market “up-trend under pressure.”   The 10 week average is now below the 30 week average for   the QQQ, DIA and SPY.   This is a serious sign of potential longer term weakness. In addition, the DIA and SPY both closed below their critical 30 week averages.     QQQ is only .35 of a point above its 30 week average.   If QQQ closes below its 30 week average, I will   exit the market.   I have a cardinal rule only to be in the market if it is in a Weinstein Stage 2 up-trend, defined as closing above its rising 30 week average. I am raising cash in my trading accounts and closing out any position that has not worked out the way I anticipated. If the 30 week average of the QQQ curves down, I will go to cash in my university pension.

2 thoughts on “QCOR break-out fails; GMI-2 falls to 2; Stage 2 up-trend in doubt, raising cash”

  1. I had a $1200 gain in QCOR until Tuesday morning and later that day got stopped out with a $620. loss after a short seller named Citron put out a negative report on QCOR’s: “Citron, run by California-based investor and notable short-seller Andrew Left, said the company used “questionable tactics” to market Acthar.” Citron’s website shows that it has been big time negative on QCOR for quite some time, saying QCOR will be a single digit priced stock. As of today QCOR is down 20% from where it was two days ago. Other analysts are now countering Citron’s negative comments but the damage has been done for a while.

  2. Hi Dr. Wish,

    I am looking to backtest an indicator to test its reliability. Would you be able to recommend softwares for someone who has no knowledge of computer programming.

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