General Market Index (GMI) table

I recently discovered that the weekly 10.4 stochastic is a great indicator for an advancing market or stock. I am now recording the value in the last line of my GMI table, see below.  Look at this weekly chart of QQQ. Note that the strong advancing market typically has a weekly 10.4 stochastic >=80 for many weeks in  a row. This stochastic basically shows whether a stock is currently near the top of its range over the past 10 weeks. A daily stochastic with a value >80 is typically considered to be a sign of being overbought. But for a weekly time period it tells me that the stock or index  is currently close to the top of tis 10 week price range. Isn’t that what we want to see in advancing market indexes or individual stocks? QQQ’s current 10.4 weekly stochastic is now=55, indicating to me the end of the recent multi-week  advance. Most of my scans for strong stocks now require that the stock have a weekl y10.4 stochastic>80 for 5 or more weeks in a row. That is a strong rising stock. Here are two examples. Try it out.

Bitcoin may be ready to bounce, must holder lower Bollinger Band at 61,833. Black dots indicate oversold bounces. I own a little of IBIT, for fun, see chart.

Markets remain in shot and longer term up-trends.

I have observed that during the post-earnings release period, like now,  the market often declines, setting up for the advance when the next quarter’s earnings are released. If the QQQ short term trend turns down on Monday, I will wait on the sidelines until it bounces. QQQ is not really down enough to be oversold but it could still turn up here. It is also right on the lower 15.2 daily Bollinger band, an area of support. Better for me to wait to see if QQQ holds. If it does not, the next line of support is the 50 day average, shown by the green dotted line. Next is the green line. Of concern to me are the red spikes in trading volume on recent down days. Also, QQQ has closed up on only 3 of the last 10 trading days. Beware!

The GMI, which measures the longer term trend, is still Green, registering 5, of 6. Note in GMI2 section that the daily 10.1 stochastic is <20, indicating short term oversold. Declines are more likely to end, however, when QQQ’s daily 10.4 stochastic, currently 39,  is <20.