Stock Market Technical Indicators & Analysis
Stocks often top out before their earnings do. It may be a good idea to check a daily modified Guppy chart before holding through earnings. TSLA and GOOGL declined tonight after market when their earnings were released. Look at their charts. Both have their red, shorter term, averages declining below their blue, longer term averages, with a white space separating them, hence, BWR down-trends. I showed you recently that NFLX also did, see charts below.
When the shorter averages (red) decline below the longer term averages (blue) leaving a white space between them, it is a daily BWR down-trend. I will not hold long positions except money market funds or treasury ETFs (TBIL). Dotted line shows daily closes. This is my modified Guppy chart based on Daryl Guppy’s GMMA indicator. Guppy’s book is listed on this blog.
Note what a daily RWB up-trend looked like beginning last May. Ignore the news and opinions and let the market guide our trading.
It is possible to find some new leaders to trade. But with most of the former leaders weakening, it is best for me to be mainly in cash. For me, a rising launched rocket is one that climbs continually above its rising 5 day EMA. I use TC2000 to find stocks that have had a GLB, are hitting all-time highs, and that are finding support at their rising 5 day EMA. When the market straightens out I will show some of these scans and how I trade them. There is a tab on this blog with a discount coupon for TC2000.
