Month: July 2013

I tend to trust short term trend changes after they reach the fifth day.   They tend to last longer once they reach this milestone. With the GMI at 6 and the short and longer trends up, I hope you will not mind that I have to take another break.   I am leaving the country to make a speech on my career in drug abuse policy.   I will post again on 7/22. I closed out all of my positions or hedged them with put options so I do not have to concentrate on them while I am away.   If I have wi-fi and see something important in the market I will try to post.   Have a great week!

Check out this great weekly chart of the QQQ–a terrific Stage 2 up-trend! The red and green arrows show GMI buy and sell signals. Click on chart to enlarge.

IBD says Thursday was a follow-through day and the market is back in an up-trend. T2108 is at 55%, in neutral territory. What a hot market!   TQQQ rose 6.23% on Thursday. Since the recent bottom on June 24, TQQQ has advanced +21%. We should enjoy this rise while we can.

One word of caution, 69% of the Nasdaq 100 stocks had a 10.4 daily stochastic value greater than 80, representing an over-bought condition. There will likely be a decline after earnings season later this summer. I have protected some of my gains with   put options. See my post from 2009 on how to use put options for insurance.

Look at that ONVO go!!   It’s up 39% this week. On Thursday, ONVO starts trading on the NYSE MKT. If it ever breaks its green line top……