AAPL followed through after its Blue Dot of Happiness signal and had a GLB to an ATH. For a definition of the Blue Dot of Happiness signal, see my recent presentation to the TraderLion Conference, Day 6.
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 38 of $QQQ short term up-trend; Banks and NYSE stocks are cratering and GLD keeps rising; something bad may be about to happen, reminds me of 2008, see charts.
I was doing my normal nightly charting when I noticed big volume declines in bank stocks. KRE is just one banking ETF that is typical of many others. Look at the huge volume today. Individual banks are falling after reporting great earnings. It is also strange that T2108 is in a BWR down-trend. T2108 reflects the percentage of NYSE stocks that closed above their 40 day simple moving averages. And GLD keeps rising. Something is wrong. This market reminds me of 2008. I need to protect myself. I am a chicken (vegan).
