General Market Index (GMI) table

Blog Post: Day 6 of $QQQ short term up-trend; IBD just added $INTA to the New America list, Recent IPO $INTA retook its green line breakout (GLB) last week; $COCO also had an IPO GLB on Friday see charts

@ 7:48 pm
GMI3/6
GMI-26/9
T210819%

It is always nice when IBD lauds a stock that I have been following based on my indicators. I first noticed INTA when it closed above its green line on March 7 and closed at an ATH (GLB). It then closed above and below its green line several times. On Tuesday it climbed above the green line on above average volume and had a big volume day on Thursday, closing at a new ATH again.  On Friday it held the green line. It will be interesting to see if IBD’s article creates buying this week. Here are the daily and monthly charts. I became even more interested in INTA when I saw it was a recent IPO and had a GLB to an ATH. This is a very bullish pattern.  The fundamentals of INTA are strong and reviewed in this week’s IBD, 3/27, p. A6.

$COCO, another recent IPO,  reached an ATH and GLB Friday on above average volume.  I am monitoring COCO. Here are its daily and weekly charts. Note recent black volume spikes on the daily. Someone big is accumulating COCO.

 

The GMI remains Red. However, tech stocks are outperforming. Remember, QQQ is composed of non financial stocks and does not contain the sinking bank stocks.  With bond interest rates declining, I suspect it will eventually cause all of the people hiding safely in interest bearing treasuries to stampede back into stocks. I think the market bottom is in, especially when I hear the CNBC Fast Money pundits Friday all talking very bearishly…. And T2108 closed at only 19%, having reached 13% last week. Major index ETFs have their 10 week averages above their 30 week averages. This the time for me to look towards going  back into the market slowly and accumulating only on the way up.

 

 

Blog Post: Day 1 of new $QQQ short term up-trend; 23 new US highs, 433 lows and 6 at ATH; Split market with tech stocks outperforming, but GMI remains Red; Weekly 10:30 chart for $QQQ shows potential longer term turn around, see charts of QQQ and 2 AI related stocks, $MSFT,$NVDA

@ 10:38 pm
GMI2/6
GMI-26/9
T210819%

This weekly 10:30 chart of QQQ shows the 10 week average (dotted line) above the 30 week average (red solid line) and the index weekly close (gray line) is above both averages. Note the higher volume last week. This is the pattern of bottoms. The final evidence for me of a new longer term up-trend will be if the 30 week average should turn up. My accounts are mainly in cash with a very small position in TQQQ (because of Day 1 of the QQQ new short term up-trend) and some QQQ itself. A weekly close below the 30 week average would invalidate the up-trend. Remember, QQQ contains non-financial companies and the absence of banks may be one reason for its better performance. Another reason may be the AI revolution, which could lead to a rise like the one that occurred in the 90s as the internet craze was born. My monthly Kiplinger Retirement Report just came and included a piece discussing 8 AI related stocks, most of whom I would not consider buying because of their long term charts. The only one’s I like are MSFT and NVDA,  but they are not near their ATHs yet, see weekly charts…

Blog Post: Day 3 of $QQQ short term down-trend; GMI=1 will likely flash Red signal on Monday; 642 new US lows Friday, most since the October low, IBD says market in correction; T2108 dives to 20%, $SPY back below critical declining 30 week average, see weekly chart

@ 7:57 pm
GMI1/6
GMI-22/9
T210821%

With the GMI at 1 (of 6), it is time to be on the sidelines in cash again. So many bullish set-ups failed last week. If T2108 declines to below 10%, I may buy a little SPY and only average up, slowly. But SPY looks quite weak now, below its declining 30 week average (red solid line), in a Stage 4 decline. Note the above average volume last week. This could portend a massive decline to the lower trend channel line, around 320. That is a worst case scenario, but with a major bank failing and a debt limit fight on the horizon………   But if to avoid a spreading bank panic the Fed slows its rate increases, we could see a huge snap back rally. The main positive technical sign I see is that the 10 week average (dotted line) remains above the 30 week average. Where that ends up will tell the story.