[marry123]

Hi,
I was wondering why one must wait for SPX and DOW to be over its 30 MA on the weekly  before buying any stocks and not simply buy stocks on QQQ given this index ripped through  its 30 MA weekly a while back and many tech stocks have been ripping higher once they made it above the 30 MA (e.g. SHOP).

Thanks for clarifying.

The volatility at the moment is extreme. 1987 & 2008 was the last comparable events I believe, so the indexes are having moves that we wouldn't normally see and even though the Nasdaq 100 is back above the 30 week MA. It is not in Stage 2 anymore, and I'd suggest that one week above the 30 week MA does not constitute a while.

I'd say it depends on what method that you are using. Trader or Investor. As if Trader method then sure the method would recommend buying stocks in the strongest sectors and selling stocks in the weakest sectors, as we have a split market with small areas of strength, but they would still need to bought at proper trader entry points where you can define your risk. Mark Minervini works along similar lines and has mentioned this on his twitter feed multiple times, as he's been short Dow for the last week and long multiple stocks that have been doing very well.

But if Investor method it would recommend being mostly in cash or alternative assets classes that are in Stage 2 i.e. Gold and Treasuries currently and potentially considering shorting the weakest markets if they rollover.

So it depends on the timeframe you are trading.

Thanks Isa, I am more an investor so will continue to sit and wait to see what happens with SPX and DOW.