10 reasons for a short term market decline–come back on Halloween?


There are a number of factors suggesting that the current QQQ short term up-trend is about to end:

Screen Shot 2016-08-28 at 9.08.10 AM

  1. Daily Bollinger Bands are very narrow, indicating low volatility and an imminent break in one direction or the other;
  2. Daily MACD histograms are negative;
  3. Daily fast stochastic is below slow stochastic;
  4. After many weeks, QQQ has closed below 10 day and 4 week averages;
  5. 2nd quarter earnings are mostly out–post-earnings lull;
  6. On verge of weakest month of year–dreaded September;
  7. GMI2=4 and T2108 weakening;
  8. Growing anxiety over a possible Fed hike in September, and November election;
  9. Sell in May, come back on Halloween;
  10. Completed 37 days of QQQ short term up-trend.

Time for me to raise sell stops and be defensive— until Mr. Market tips his hand…..


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