Stock Market Technical Indicators & Analysis
Here is a weekly GMMA chart of the gold ETF, GLD. Gold is in a BWR down-trend with all of the shorter term averages (red) declining below the longer term averages (blue). This is the opposite of the RWB rocket stock pattern I have discussed before. Note GLD’s RWB pattern during the up-trend through mid-2011. (The green lines are prior multi-month bases at all-time highs.)
ONVO continues to show technical strength as it moves to another 52 week high. There is huge buying volume, suggesting that something good is about to happen? Check out this daily chart. I own ONVO, but it is very speculative.
This weekly chart shows that ONVO is approaching its green line (all-time high) top.
IBD now calls the “Uptrend under pressure.’ Meanwhile, I had already closed out my position in TQQQ earlier in the week. Why? I posted last Sunday night that I saw technical weakening in the QQQ, based on its diminishing stochastics and MACD histogram. Both indicators have continued to weaken. I want to show you, how the MACD histogram can illustrate something not seen in the price itself. This daily chart of the QQQ shows the MACD histogram below it. Note that in a 9 day period before Thursday’s decline, it looks to the naked eye like the price of QQQ remained level. At the same time, the MACD histogram was showing marked weakening! (The histogram plots the difference between the MACD and its signal line, which are both plotted on the histogram chart. When the histogram turns red, it means the MACD has fallen below its signal line.) The histogram actually turned red on Wednesday.
While my indicators show the QQQ remains in short and longer term up-trends, I did not want to own a 3X leveraged bullish QQQ ETF while the MACD histogram (and stochastics, not shown) was falling. Many suggest the MACD is a lagging indicator–not to me, or Judy, who taught me this! I will consider going back into TQQQ again when the histogram starts rising. Both the QQQ MACD histogram and stochastics were recently added to the indicators I count and post daily in the GMI-2 figure to the right.
