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Many tech leaders are being slaughtered. Many breakouys are failing. Not just techs are weak. See this failed GLB by AMZN after its large volume earnings gap up on 10/31. To remain a successful GLB, the stock must not close back below the green line. I am mainly in cash in my trading accounts, while holding a little SQQQ. I will add more SQQQ with continued weakness in QQQ on Friday and the start of a short term down-trend. I will accumulate SQQQ very slowly. Many new QQQ short term down-trends have ended within 5 days. I will add more after 5 days or go back to TQQQ with the start of a new short term up-trend. GMI is down to 3 (of 6).

Rather than trying to predict the minority of individual stocks that will beat TQQQ, the needle in the haystack, why not buy the haystack? See Les Masonson’s excellent new book about TQQQ. Find his book listed in this blog page. These 15 stocks did better than TQQQ. MU did best with a gain of 110.36%. Almost one half (7) were semiconductor companies. Did you buy them on Day 1 on 8/25?  Buying TQQQ on Day 1 is easier, but scary. You are buying at the beginning of a new up-trend, which you may not trust. I have replicated this analysis many times over the years with the same results.

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If 10 week fails to hold (blue dots) , the next major support is the 30 wk average (solid red line) and/or prior green line. A failure to hold the 10 week will be a major sign of weakness. My trading accounts are in cash with a little position in SQQQ. If the QQQ short term up-trend ends next week I will accumulate SQQQ. The growing number of daily new lows and the many failures of leading tech stocks to rally off of good earnings were major signs of weakness. No one knows when and where this decline will end. We must contain losses. Tonight’s  GMI will be 3 or less.