If a stock has a GLB and then closes back below the green line, it is a failed GLB and I exit immediately. If it subsequently closes back above the green line, I buy it back. AAPL reports earnings on 10/30.
General Market Index (GMI) table
Blog Post: Day 39 of $QQQ short term up-trend; Much weakness on Friday: more new lows than highs and only 8 at ATH, lowest since April 24! Another possible head and shoulder’s top forming, see daily chart. GMI=4 but Green, see table.
Last August I wrote that I saw a possible head and shoulders top pattern forming, but the market broke above the right shoulder and moved higher instead. I have drawn in another possible head and shoulders pattern in QQQ that has been forming. This week we will see if it is resolved like the earlier one, or is really a top. The steep decline on October 10, noted by an arrow on this chart, occurred with the largest trading volume in months and is very troubling to me. But our job is to react and not to predict. So let’s see what this earnings filled week brings. A close below 589.05 would be a sign of extreme weakness. I am ready to go long or short once this pattern is resolved.
The GMI=4 but is still Green.
Blog Post: Day 34 of $QQQ short term up-trend, it could end on Monday; GMI= 4 and still Green; Will indexes hold on Monday?
I am sorry but I cannot access TC2000 tonight. Indexes are oversold but on support. Monday’s action will tell us whether the markets will hold. I am in cash in my trading accounts after selling out on Friday.
