All Posts

The down-trend continues and the market remains in a correction, according to IBD.   I ran my submarine scan to look for possible weak stocks to short.   Among the stocks I found are: MICC, AKAM, PVH, SAN, HSP, VCI, CTRP, CREE, DLB.   I short stocks in my IRA by buying deep in the money puts.   Once the stock falls I often buy shares to lock in the gain and ultimately put them to the option seller at the strike price.   Note that DLB now has a BWR pattern, with all of its shorter term averages (red) below its longer term averages (blue). Click on weekly chart to enlarge.   BWR is a submarine pattern.

Both the GMI and GMI2 rose to 2, but the short term down-trend is still in place.     IBD also says the market is still in a correction.   The market has snapped back on unimpressive volume, suggesting to IBD that the institutions are not jumping on board.   I remain mainly in cash with a couple of small short positions. Check out the daily chart of the QQQQ below (click on chart to enlarge). The short term up-trend that began last September is now over. The new short term down-trend is 10 days old.   How long will it last?   No one knows. I follow trends until they end.

The QQQQ completed the 8th day of its short term down-trend on Thursday.   In that period the QQQQ has fallen -4.8%, the SPY by -3.6% and the DIA by -3.5%. These indexes are down even more from their February closing highs (QQQQ – 7.2%, SPY   -4.9% and DIA -4.8%).   Of course, the inverse ETF’s advanced greatly during this period. Since I identified the QQQQ short term down-trend as beginning on March 8,   TYP has increased by +18% and   SQQQ by + 15%. I remain mainly in cash and in some QID in my IRA trading account.   The longer term trends of the QQQQ, SPY and DIA remain in a Stage 2 up-trend.

I was looking at the daily new high list from Thursday and   noticed an incredible cup-with-handle break out formation.   When it announced earnings a few days ago, AIRM broke out of a beautiful pattern to an all-time high on daily volume which was many times its average volume. I will keep an eye on this stock for a possible purchase when the market down-trend ends.

AIRM is also an RWB rocket stock. Click on weekly chart to enlarge.