The GMI rose to 2 (of 6) and the GMI-R to 5 (of 10). The more sensitive GMI-R is picking up strength in my very short term indicators. A few more days up will turn the GMI positive and end the QQQQ down-trend. The QQQQ completed the 35th day of its down-trend on Wednesday. The Worden T2108 indicator is now at 37%, well into neutral territory. There were 69 new highs and 63 new lows in my universe of 4,000 stocks on Wednesday. It is time to look for strong stocks that are breaking out. Once the trend is up, I will discuss the stocks I am watching. Right now I am wading into the ultra long QQQQ ETF, QLD.
Month: July 2008
GMI: 0; GMI-R: 2; 34th day of QQQQ down-trend; turn near?
The GMI remains at zero (of 6), but the more sensitive GMI-R has climbed to two (of 10). There were 36 new highs and 67 new lows in my universe of 4,000 stocks on Tuesday. The Worden T2108 indicator is up to 32%, in neutral territory. More promising is the fact that the QQQQ MACD is now above its signal line. In the past, this pattern has provided an early indication of a reversal of a down-trend. I am beginning to look at slowly accumulating QLD, the ultra long ETF for the QQQQ.
GMI: 0; GMI-R: 0; 33rd day of QQQQ down-trend; shallow decline
The GMI and GMI-R are both back to zero. There were 26 new highs and 78 new lows in my universe of 4,000 stocks on Monday. The Worden T2108 indicator is back to 23%. All of these readings are far above the lows hit earlier this month. For example, on July 15, there were 988 new lows. So, in spite of the media’s pronouncements and hyperbole, the decline the past few days is shallow and no where near as extreme as earlier in the month. Time will tell…….