Transition time????

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last 2 -3 days were very interesting. Yesterday S&P 500 dropped by 0.3 % but the number of S&P 500 stocks above their 50 days Simple Moving average (SMA). Last 5 trading days it dropped by around 9 points. Nothing serious but makes me cautious.

Russell 2000 closed below its 10 days SMA. It’s finding a touch resistance at 200 days SMA.

Let’s look at Heikin-Ashi chart for S&P 500 Stocks Above 50-Day Average ($S5FI)

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not good look – the number of stocks in S&P 500 are losing momentum and are falling below their 50 days SMA. about 21 percentage points from march 1st 2019.

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It’s in an amazing trend – not only there has been higher volume price increase in QQQ yesterday but volume increase was 50 percent above average!

lets look at 5 mins chart for NASDAQ composite

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just up and down and lots of volatility but the most important point is that the closing price of the day. Which is the most important price – its been going up since Friday of March 8th 2019 except for one day on 3/14/2019, which is last Thursday.

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for the 3rd day in a row TQQQ closed above the 200 days SMA!Screen Shot 2019-03-21 at 9.29.20 AM

The only thing little bothersome is Russell 2000 has been falling in the last chart which is the ETF with volume

all the FAANG stocks are up – wonderfully yesterday. Netflix was a bumper. It went up 4.5%, up 16 + dollars !!!Screen Shot 2019-03-21 at 11.43.17 AM

So what is the conclusion? Price is the only true north star and it is up so I am long NQM19 and TQQQ.

Happy trading!!

 

 

TQQQ 71.9% Growth since Market bottom of 24th December 2018

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TQQQ just crossed its 200 days Simple Moving Average on Tuesday’s trade. It crossed it in Higher Volume of 20 million. It’s average 50 days Volume is 18 million.

ProShares UltraPro QQQ seeks daily investment results, before fees and expenses, that correspond to three times (3x) the daily performance of the Nasdaq-100 Index.

From the above picture it gained around 72 % in the last 3 months or so

Below is QQQ reflecting 1:1 for NASDAQ 100. look at the On Balance Volume. It is fantastic with no divergence.

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IBD says this “The overall action points to a generally healthy climate for stock pickers.

In IBD Leaderboard on Tuesday, as many as seven companies rallied 0.5% or higher, easily outrunning the major indexes. They include Zscaler (ZS), which has thrust more than 40% past a prime buy point of 48.34. Diabetes play Dexcom (DXCM), Euronet Worldwide (EEFT) and Chipotle Mexican Grill (CMG) also rose nicely.”

One cloud in the silver lining – It continues “The Nasdaq composite wasted an early advance of nearly 0.7% to finish with a 0.1% gain. It closed well within the lower half of Tuesday’s intraday range. Volume rose vs. the prior session. The price-and-volume action pointed to stalling, a form of distribution in which large fund managers sell heavily into market strength.

The stalling day raised the Nasdaq’s distribution count back to five over the past 25 trading sessions. On March 13, the Nasdaq shaved off a Feb. 7 distribution day to its recent strong advance.

Four other instances of unusually strong profit-taking have taken place a lot more recently: Feb. 28 (down 0.3%), March 4 (-0.2%), March 6 (-0.9%) and March 7 (-1.1%).”

It has been 7 days of fantastic run after the bad week of Monday March 4th – Friday March 8th

Currently I’m Long on NQ and TQQQ

 

weekly stock market review as of Week ending Friday March 15th 2019

barchart sectors 5 days performance as of Closing Friday March 15th 2019Screen Shot 2019-03-18 at 12.54.55 PMfidelity end of 5 days as of Friday March 15th 2019

the top 5 sectors closed at the week’s highs. IWM – Russell 2000 ETF after last weeks red candle and down week has been picking up and again this week might test the 50 days Simple moving average (SMA).

according to IBD “The Nasdaq sprinted 0.8%, leading the market largely on strength in semiconductor stocks. The S&P 500 and Dow Jones Industrial Average each added 0.5%. The small-cap Russell 2000 rose nearly 0.3%. Volume rose sharply due to the simultaneous expiration of options and futures.”

IBD continues “During the week, leadership was broadly based. A dozen and a half groups scored weekly gains of 5% or better, according to preliminary data. They included medical stocks, retail, tobacco, semiconductors, computers, oil and transportation ships.

Note the variety: This is not a narrowly based uptrend, and that’s good news. Bulls prefer diversified leadership because it protects the indexes against one-off outcomes.

The S&P 500 index and Nasdaq composite recouped the prior week’s losses and hit their best levels of the current stock market rally, climbing 2.9% and 3.8%, respectively, for the week.”

Overall the market is in good health. Small caps are rising, and most importantly growth stocks are behaving extremely well.

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happy trading!!

 

Good days ahead?

 

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the above is a chart which indicates a 13 + % jump in the number of all stocks trading above their 50 days Simple moving average. This jump occurred yesterday’s trading which was calm and non directional.

this is the best 1 day jump since the start of this current bull market on December 26th 2018.

this may be foreboding a good week next week.

Happy trading !

Market overview for Tuesday March 12th 2019

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QQQ the cubes representing NASDAQ 100

this month is the 20th anniversary of Invesco QQQ, its top-performing large-cap growth ETF that tracks innovative companies included in the Nasdaq-100 Index. Launched on March 10, 1999, QQQ offers investors access to global growth companies, excluding the securities of financial companies.

QQQ is the sixth largest ETF listed in the US with $66 billion in assets under management and one of the longest performance histories available in an ETF.

It is amazing for the individual investors. it went up 500% last 10 years. It closed at 30 in March 2009 and this march of 2019 it is at 176.

Mining Gold silver and gems industry group is the top performer on Tuesday. The best YTD is energy solar companies, with 39% gain so far.

SOXX ETF and IGV Software ETF has lots of influence on performance of NASDAQ – 100.

IGV is up 23.4 % this rally starting December 26th last year. IGV is up 29.6 %. NDX – nasdaq 100 is up 19%.

NASDAQ composite’s volume was below average yesterday with 2.1 billion shares traded.   it went up around 0.44%. The best part is that it surpassed the closing price of Monday March 4th 2019 which resulted in a 5 day pullback.

IBD says this – “The tech-fortified Nasdaq composite gained 0.4% on Tuesday. It continued to gnaw away at the constructive pullback of 4.1% seen over a five-session selling streak that ended Friday. At 7591, the leading index for growth stocks is still enjoying one of its strongest advances in any quarter in recent history, up 14.4% since Jan. 1”

Yesterday’s low of NASDAQ did not touch any of the previous day’s price which is fantastically bullish.

the small caps ISHARES Russell 2000 ETF IWM did not show any direction yesterday and was very tepid

 

 

 

Palo Alto Networks (PANW); Why price is the true north star

Palo Alto Networks is a super high flying stock. It is a sector leader, it is in IBD 20 big cap growth stock, and in the top 50 growth stocks in the USA.

It jumped on earnings 20 dollars on 2/25/2019. By yesterday by 4 trading days it lost about 20 dollars. Why?

there was no bad news, market was not overly selling away. So we do not know. But price does have all the info that we need to trade!

We do not know why sometimes. But what does that matter!

Cut your looses short and move on. I did that and sold on March 1st and went long on QLD. Why? because the market is in uptrend.

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Past one month Feb 2019

when market is topping and breaks down, then the top sectors and  top stocks begin to breakdown. The small stocks in Russell 2000 breaks down

But as of now this is not the case and it is the 10th week in a row the NASDAQ has gone up.

Russell 2000 just crossed the 200 days SMA. Now all indices are above their 200 days SMA!

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