Daily GMMA of $QQQ shows continued strong up-trend; $BITA: cup and handle break-out


The daily GMMA chart of the QQQ shows the strong current up-trend in this index ETF.   The arrows show recent GMI Buy and Sell signals.   Note how the short term averages (red lines) constrict when a pause occurs. As long as the shorter term averages are rising above the longer term averages (blue) the up-trend is intact.   This is the RWB rocket pattern I like to see on daily and weekly GMMA charts. The black dotted line is a moving average of 1, to show the closing price of the QQQ each day. (My color scheme for the GMMA differs from that used by its creator, Daryl Guppy. )…….


I had noticed the strong up-trend in BITA over the past year (it has tripled!) and wished I had traded it.   One of my students alerted me to a nice move in the stock on Friday and I bought some.   It looks to me like BITA has broken out of a classic cup and handle pattern. I drew in the pivot point at the high point of the handle. Note the recent all-time high and the huge trading volume on Friday.   It remains to be seen whether this break-out will hold. (If it does not, I will exit quickly.) IBD has a nice article about BITA, which it published after it reported earnings last week. At least I will not have to worry about a bad earnings report!


This weekly GMMA chart of BITA shows that it has been in a RWB rocket pattern since early 2013 and had a green line break-out (GLB) to an all-time high in mid-2013.   How did I miss such a great move?


Meanwhile the GMI remains on a Buy signal with all six components positive.



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