5 days of stalling and no progress
2 days of high volume selling
100 points loss in 2 days in high volume
Top leaders down in high volume
( first photo source : trading view )
FFTY etf a proxy for top 50 beat stocks in the market down by 2%
It has to be of note Ladies and Gentlemen, fellow travelers that we have had 46 bullish weeks so far – NASDAQ has had 21+ %, DOW – 18.6 %, and S&P has had 15 % return
About 65% of market is moving above their 75 day Moving average!!
the famous DOJI occurred on June 12th 2017 – nothing but the the first candle in the first chart – then look at the trend!! Weekly is amazing
Now we know that price is the true north star. We react to the market – we let market show us in 2 charts what is going on. We don’t predict. We buy when the market is going up and sell when when market is going down. Period!
So i am on the long! there is a clear break to the upside occurred at the end of Sept 2017.
Happy trading and travelling
PS: i don’t give recomendations, and this is only my personal opnion.
I have gotten into all cash positions. Sold my etf, and mutual fund (I had one of each).
Growth funds have collapsed. Small-cap is lagging.
I have shifted all my monies into money market funds.
Stay on the side lines. Number 1 rule – Don’t lose money. Number 2 rule – don’t forget number 1. (I am not talking about cost of business or losing some money when you just got into a position and then because the market has turned on you, had to sell. That is expected).
Your only, and one and only indicator is the 75 day simple moving average (SMA). QLD and QQQ have both gone under it. Sell.
Once it comes back up the 75 day SMA – buy QLD or QQQ.
Now there is another option on the downturn – buy QID (It is reverse double of QQQ). It has just gotten above it’s 75 day SMA.
Though the market has had around 6 heavy selling in the last 2 months. It is hitting it’s highs again. Caution is required during this period.
let’s look at the top 50 stocks in the USA
at number 33 is Whiting Petroleum (WLL)
First let’s look at its weekly chart, and then daily
as you can see in the weekly chart there is a strong resistance formed on april 1st 2011 – 74 -75 USD.
and also the red line – 50 week MA – consolidating neatly (we want to see a good pull back in light volume)
The float (at the middle top of the chart) is very nice 118 million (for a stock with EPS rating of 97 – performing better than 97 % of all the stocks) this is woderful float – very easy to go up. with an average daily vol of 2.6 million
Whiting petroleum corp ranks number within the oil&gas expl&prod group of stock (102 stocks) for overall rating of 99 (top 1% of all stocks in the market)
IBD (Investors Business Daily) research shows that 37% of a stock’s price movement is tied directly to the performance of its industry group. An additional 12% is due to the strength of its overall sector. In other words, stocks aren’t islands.
Now the Industry group for WLL is oil&gas exploration & Production – it is ranked number 5 in 197 industry groups.
and over all as a group the growth is 37% YTD.
WLL has a Relative strength rating of 86, which is good but we want to see more high volume accumulation.
So keep an eye open on this stock