Sent the note below to the respected trend follower Easan Katir this evening. His work on the 10/240mac I speak about often. Definite recommended reading if you want to understand what I'm talking about when I mention 10/240mac.
http://www.easankatir.com/resources/articles/articlesbyeasan/Superior_Returns_from_Average_Indicators.shtml
10ma is dark blue and the 240ma is red on the following charts :
QQQ
http://screencast.com/t/OSSo76XMMz
TQQQ
http://screencast.com/t/Wuq5bn17Nq
QLD
http://screencast.com/t/5aFjLKI3ihH
Mr. Katir very interesting stuff here. QQQ, TQQQ, QLD never had the negative 10/240mac. They are below the 240ma which is not ideal, but according to the rules there is no SELL until you get the cross over. If markets are going to bounce with any significance I think these could LEAD much like they did in Sep 2010. QQQ, TQQQ, QLD 240ma lines up with the 50% retrace from the recent waterfall. Could be a nice grind higher, or a fast snap back to those levels if not higher. I like these best vs SPY, DIA, IWM and all their juiced up beta pairs because they all had negative 10/240mac. Thesis is : that which led us shall continue to lead. Ie: AAPL, BIDU, and all those other NASDAQ leaders.
Thoughts?
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