After 64 days, the QQQ short term up-trend could end on Tuesday with a down or flat day. (IBD now declares uptrend under pressure.) It was a great, long ride! The QQQ is on several levels of support that I monitor, so that index could bounce up by Tuesday’s close. If it does, the key for me is whether that bounce will hold through Wednesday. A failed bounce could lead to a large decline. I cut back on my holdings in my trading accounts on Monday. Remember, a market always falls faster than it went up, and this market rose pretty fast.
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62nd day of $QQQ short term up-trend; $GLD and $ISRG in BWR down-trends
Yesterday I showed you the RWB rocket stock pattern and how it helps me to identify strong stocks. Tonight I will show you the reverse, the BWR pattern, that can keep me out of stocks in a major down-trend. You can see from this weekly Guppy chart of GLD, how it alerted me early on to the down-trend in gold. Who in their right mind should have been long gold in 2013?
This chart shows ISRG’s transition from an RWB up-trend into a BWR down-trend.
A weekly Guppy chart is all I need to determine the longer term trends of a stock, ETF or mutual fund. Guess what pattern the Dow has……..
61st day of $QQQ short term up-trend; CURE appears healthy!
CURE, the 3X leveraged health care ETF continues to rocket higher. You may recall the analysis I posted a few days ago showing that CURE rose +160% in 2013. Below is its daily chart. CURE may find some resistance at the top of its Bollinger Band, however.
Its weekly Guppy Chart paints a beautiful picture of an RWB rocket stock.
