Indicators

• GMI: 3/6
• GMI-2: 2/9
• T2108: 51%

Modified Guppy chart tells the story. Best time to trade QQQ type stocks is when the index is in a RWB up-trend with all Red shorter term averages climbing well above the Blue longer term averages with a White space between them. The RWB pattern was evident from mid-April to early June and trading break-outs in tech stocks  worked very well for me. The dotted line shows the daily closes. In a solid up-trend it leads all of the averages higher. The dotted line is now declining below all of the averages. When we get a close above all of the averages, and a RWB, we might see a meaningful change in trend.The market’s behavior reveals all.

Modified Guppy charts also work for stocks!! Before I buy or sell, I always check out the modified daily Guppy charts.

Indicators

• GMI: 1/6
• GMI-2: 2/9
• T2108: 47%

UGA tracks gasoline futures. This is an interesting ETF in current times. I missed the GLB in March because I don’t regularly scan ETFs for GLBs. Is the ETF about to run out of gas????? (I couldn’t resist this pun.)

Here is its monthly chart. Prior green line was changed to orange.

Indicators

• GMI: 2/6
• GMI-2: 1/9
• T2108: 51%

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.

Indicators

• GMI: 2/6
• GMI-2: 1/9
• T2108: 51%

Note the oversold bounce on last Friday signified by the blue dot. This is the earnings release rally I had been expecting. But there were only 83 new highs and 30 ATHs, very pitiful. The post earnings release period wlll  be very interesting, if not scary. Note that the GMI has flashed RED.

Indicators

• GMI: 1/6
• GMI-2: 1/9
• T2108: 50%

I am very worried about the strength of the current market. There are times for me to step away. If growth stocks announcing good earnings this week weaken, I fear that the markets are in for a steep decline. Too many young persons who have only been trading for a short time will learn the hard way that minimizing losses is the key to success. This modified daily Guppy chart shows that QQQ is leading all 12 moving averages lower. The dotted line shows daily closes. A new advance will occur when the reverse happens. Look at the pattern last May during that wonderful rally. That is what I am waiting for. I ignore the news and the media pundits and follow the market’s actions.

Indicators

• GMI: 3/6
• GMI-2: 1/9
• T2108: 56%

QQQ might bounce this week but still looks technically weak. Last Friday it did have a blue dot signifying an oversold bounce. Note the 30 day average, solid red line,  is curving down, a major sign of weakness.

NFLX has been in a daily BWR decline since May. Always monitor the daily modified Guppy chart.There are 12 exponential averages and one average=1 to show daily closes as a dotted line. The dots show daily low prices.

The GMI = 3 and the GMI2=1

Indicators

• GMI: 4/6
• GMI-2: 3/9
• T2108: 54%

All shorter term averages (red lines) are compressed, showing little change over the past 15 days.

Indicators

• GMI: 4/6
• GMI-2: 2/9
• T2108: 53%

QQQ was down on higher volume Monday than Friday and the 30 day average is curving down, a major sign of weakness. QQQ also closed below its 50 day average (green dotted line). Will QQQ find support at its lower Bollinger band (@700) again? We must react and not predict. Wait for Mr. Market to reveal his intention.

Indicators

• GMI: 3/6
• GMI-2: 7/9
• T2108: 52%

The coil is constricting between the upper and lower 15.2 daily Bollinger Bands. Note the several failed blue dot oversold bounces. Which way will QQQ break out? Stay tuned. Earnings season is upon us.

The GMI=3 but the GMI2 of some more sensitive shorter term measures is =7. And QQQ’s Stage 2 longer term up-trend continues with its 10 week average above its rising 30 week average for the 10th week.

Indicators

• GMI: 5/6
• GMI-2: 7/9
• T2108: 50%

This weekend we shall see if this comeback has held. I focus largely on QQQ which reflects tech and  growth stocks. SPY has been somewhat stronger recently, only closing below its 10 week average one week, see its weekly chart.