IBD calls new up-trend; looking at TQQQ

@ 7:00 am

After adjusting trading volume for the shorter trading day on Friday, IBD said Friday constituted a follow-though day of the rally   and proclaimed a new up-trend.   The GMI and GMI-2 are both at 3 and could easily give a buy signal this week. Two consecutive days with the GMI above 3 will produce a new buy signal. However, IBD is so good at calling the market’s trend that I will respect their opinion and exit my small short in position in SQQQ and start to slowly go long the TQQQ in stages. If this is a new up-trend there will be plenty of time to accumulate TQQQ on the way up. I am also impressed at the recent relative strength of FB, which I own.

31st day of QQQ short term down-trend; correction continues; FB strong

@ 7:00 am
GMI1/6
GMI-23/9
T210834%

The market is not out of the woods. IBD still calls it in a correction.   And the GMI is only 1 (of 6).   The market is no longer oversold.   I am watching AAPL for clues of the market’s trend. A close of AAPL above 591 would suggest significant strength. But its 10 week average is about to cross below its 30 week average, a sign of weakness.

Meanwhile, FB continues to show strength, now closing at $24.32.   The daily Guppy GMMA chart shows that the short term averages (red lines) are now rising above the long term averages (blue lines), a major sign of strength. I own some FB.

 

Bounce continues but is this a bear market rally?

@ 7:00 am
GMI0/6
GMI-22/9
T210830%

IBD still sees the market in a correction.   Monday’s trading volume was lower then Friday’s.   Monday was the 29th day of the current QQQ short term down-trend.   The T2108 indicator is at 30%, well out of oversold territory.   The key to the market is how this rally performs.   The market is not out of the woods because of a couple of days of advances.   This could be a dead cat bounce.   Only time will tell. I may not be able to post on Wednesday.