Triple Q Looking Good

Summary

  • QQQ closed above its 20 DMA.
  • Closed 16.35% above its recent low.
  • Buy in small.

Each day Barchart publishes on the Stock Market Momentum & Daily Stock Activty page the following table:

Market Performance Indicator

Barchart Market Momentum Index (BCMM) [+5.98%] is an exclusive index used as an indicator of change in overall markets. It reflects the movement of stocks who fit the following criteria: must have current SEC filings, must have traded for a minimum of 6-months, and must be trading above $2.

MARKET AVERAGE

The percentage of stocks in BCMM above their individual Moving Average per period.

  5-Day MA 20-Day MA 50-Day MA 100-Day MA 150-Day MA 200-Day MA
Today 93.81% 27.68% 5.70% 7.02% 9.40% 10.75%
Yesterday 81.66% 11.67% 3.77% 5.04% 6.73% 7.71%
Last Week 31.65% 4.30% 2.85% 3.69% 5.12% 6.13%
Last Month 5.04% 7.24% 13.66% 23.52% 28.91% 31.81%

I will buy back into the the market when this page shows that 50% of the stocks are trading above their 20 day moving average in a 25% increment. I will buy another 25% increment when 50% of the stocks are selling above their 50 day moving average and then again when the same is true for 50% of the stocks trading above their 100 and 150 day moving averages. I will be setting my stop losses at the 200 day moving average and wait for the time that I can begin again to believe that the data has some reliable predictability for individual stocks

Here is a chart of the NASDAQ 100 ETF (QQQ) and I will use it and the table above to be my rational guide to getting back in:

(Click on image to enlarge)

QQQ

This may not work for all of you, but I thought I would share the method that I'm comfortable with.

Be careful. Be rational.

Disclosure: None.

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