Indicators GMI: 1/6 GMI-2: 2/9 T2108: 32% We want to buy or hold  stocks/ETFs that are closing repeatedly (dotted line) above all of the shorter averages (red lines) which in turn should be rising above the longer term averages (blue lines) so that there is a white space between them=RWB pattern.  The opposite pattern, BWR, shows a down-trend. BA shows a RWB pattern turning into a BWR pattern. There is no excuse for riding a BWR pattern. This is a daily chart. A weekly chart shows longer term patterns the same way. When the white space disappears it is time to exit until a new tre ..read more

Indicators GMI: 1/6 GMI-2: 2/9 T2108: 29% I recently discovered that the weekly 10.4 stochastic is a great indicator for an advancing market or stock. I am now recording the value in the last line of my GMI table, see below.  Look at this weekly chart of QQQ. Note that the strong advancing market typically has a weekly 10.4 stochastic >=80 for many weeks in  a row. This stochastic basically shows whether a stock is currently near the top of its range over the past 10 weeks. A daily stochastic with a value >80 is typically considered to be a sign of being overbought. But for ..read more

Indicators GMI: 1/6 GMI-2: 1/9 T2108: 22% My adapted daily GUPPY, GMMA charts tell me when an up-trend has ended. My former student, Richard Moglen, tells how to build them using TC2000. As long as the shorter term (red) averages are rising above the longer term (blue) averages with a white space separating them, RWB, the up-trend is intact. When the white space disappears it is time for me to raise stops and/or exit. When the pattern reverses to BWR, I am out or short, see TSLA. The dotted line is the daily close. Check out these charts. A picture is worth how many $$$$? ScreenshotScreensh ..read more

Indicators GMI: 2/6 GMI-2: 1/9 T2108: 28% QQQ has broken below its recent support level on above average volume. DIA and SPY are equally weak. Support may be around 405 or the green line at 408. This is the time for me to be on the sidelines in my trading accounts. The longer term trend remains up but the GMI has turned RED. If the GMI hits zero, I will begin to transfer my conservative retirement funds from mutual funds into money market funds. ScreenshotThe post Blog Post: GMI turns RED; Day 6 of $QQQ short term down-trend; only 28% of NASDAQ 100 stocks closed above their 50 day averages ..read more

Indicators GMI: 2/6 GMI-2: 2/9 T2108: 33% As I indicated in a tweet, @wishingwealth, intraday last Friday, I went to cash in my trading account. Too many breakouts have failed. GLD looked like it had experienced a high volume reversal. SPY and QQQ have now closed below their 10 week averages. Another weak day will turn the GMI to Red. I will wait to see if we get a strong earnings related bounce this week. This market is not acting well enough for me to take on long positions. Sell in May is almost upon us. ScreenshotThe post Blog Post: Day 6 of $QQQ short term down-trend; GMI=2; Will earni ..read more

Indicators GMI: 3/6 GMI-2: 6/9 T2108: 43% Thus far, QQQ has held above last week’s low of 435.11 and has reclaimed its 4 and 10 week averages. My adapted weekly GMMA chart shows QQQ to remain in a sustained RWB up-trend. The dotted line represents each weekly close. The purple dots are the weekly lows. We want all the short term  (red) averages to rise above the longer term averages (blue) with a large white band separating them, hence the RWB pattern. Screenshot AMZN had a GLB on Thursday. I would have liked to see an increase in volume. AMZN must not close back below its green line ..read more

Indicators GMI: 2/6 GMI-2: 2/9 T2108: 43% Note that I have added a red dot indicator to my primary daily chart. A red dot indicates that a stock closes down on the day it exceeded its upper daily 15.2 Bollinger Band. I do not want to buy on a red dot bar and sometimes may want to sell or trade a potential decline. QQQ has been bouncing between its Bollinger Bands for some time. QQQ is also on its 50 day average (green dotted line). The GMI =2 and could turn Red on Thursday. Be careful. Screenshot     The post Blog Post: Day 4 of $QQQ short term down-trend; More US new lows than hi ..read more

Indicators GMI: 4/6 GMI-2: 4/9 T2108: 54% While a new QQQ short term down-trend began on Friday, many end within 5 days. The fact that QQQ held its lower Bollinger Band, its 50 day and 10 week averages and had a black dot oversold bounce suggests that this bounce may hold. The key is to hold last week’s low. One thing going for the market is that first quarter earnings come out soon. However, now we are getting close to the “Sell in May and go away and comeback at Halloween” period. I am very defensive,  holding mainly cash in my trading IRA and am waiting for Mr/Ms Market to define it ..read more

Indicators GMI: 4/6 GMI-2: 3/9 T2108: 53% A lot of technical damge was done on Thursday. Friday’s reaction to the jobs report should determine whether this decline will broaden. 10 week average is the blue dotted line. Support for the longer term up-trend is the 30 week average (red solid line).   The post Blog Post: Day 60 of $QQQ short term up-trend, may end Friday; GMI falls to 4, $QQQ closes below 10 week average for first time since last October, see weekly chart first appeared on Wishing Wealth Blog ..read more

Indicators GMI: 6/6 GMI-2: 4/9 T2108: 58% Even had a green dot signal. How high can it go? Be careful. The post Blog Post: Day 59 of $QQQ short term up-trend; $GLD has had a nice run since GLB and Blue Dot signal, see daily chart first appeared on Wishing Wealth Blog ..read more