Monday is a critical day for the market. The QQQ is over-sold and it will either bounce or begin a significant decline. The key is to wait for the end of the trading day, around 3:45 PM, to see where the market will settle. Right now I remain mainly in cash in my trading accounts, with a small position in SQQQ.
I ran my scan for stocks that reached a 52 week high on Friday and had good recent quarterly earnings. Almost one half of the only 17 stocks that came up were involved in energy. Three of the energy stocks (EOG, WGP, FANG) have been on the IBD 50 list or in their New America column. If the market turns up, I prefer FANG. Check out its daily chart below. Note the 30% rise in February, followed by a 5 week consolidation. FANG has just broken out and now has expanding Bollinger bands.
But with the GMI on a recent Sell signal, I will keep my powder dry and wait for a change in trend to go long again. Note that the QQQ is now back below its critical 10 week average. In contrast, the SPY is still above its 10 week average. This decline has targeted biotech and growth stocks.