GMI: 0; In cash or short
The GMI returned to zero on Thursday. Between 10-16% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes advanced. Only 13% of my universe of 4,000 stocks advanced, as did only 9% of the IBD 100 stocks listed on 5/15. 
There were 24 new highs in my stock universe and 249 new lows. On June 13 there were 13 new highs and 292 new lows, so we are approaching the depths of the decline in mid-June. 18% of the Nasdaq 100 stocks closed above their 30 day averages. Put another way, only 18 of the Nasdaq 100 stocks closed above their average closing price over the past 30 days. Only 29% of my universe of stocks are in a bullish Stage 2 up-trend, as defined by Stan Weinstein (see his book, listed on the right). 17% of my universe of stocks are within 5% of a new low, while just 9% are that close to a new high. Approximately 3 of every 4 stocks closed on Thursday below the price they closed on 5/15…….
With the GMI at zero, I hold no stocks in any account. There will be plenty of time to buy stocks again after the inevitable real turn occurs, sometime in ………………………
Please send your comments to: ewish@comcast.net.
Comments ( 1 Comment )
Andre added these pithy words on Fri, 7-14-06 at 10:01 amEric,
Would it be prudent to move into an ETF like TIP when the market is heading south?
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