GMI: 0; GMI-R: 0; 16th day of QQQQ down-trend; Worden T2108: 11%; VIX: 26%
The GMI and GMI-R remain at zero. There were 66 new highs and 452 new lows in my universe of 4,000 stocks on Wednesday. The market was not as bad as it looked, with only about one half of the new lows than we had on Tuesday. Wednesday was the 16th day of the current QQQQ decline. The Worden T2108 indicator closed Wednesday at 11%, well into bottom territory. The VIX also moved up to 26%….
The bear got around to killing the previously strong metal and coal stocks. I learned (again) the painful lesson to refrain from writing covered calls on any stocks during a market down-trend. While QID and my shorts have made money, I lost money on my covered calls, which I subsequently closed out. Only write calls on strong stocks in strong markets.
Comments ( 2 )
James added these pithy words on Thu, 7-3-08 at 12:41 amRather than sell at top of channel when I saw market turning, I sold my fertilizers and coal a little late last week.
One always thinks strong sectors won’t give it back.
Kris added these pithy words on Thu, 7-3-08 at 1:17 pmThanks for the excellent blog, Dr. Wish! And I especially appreciate your disclosing the “mistakes” we can all learn from. My mistake is Chipotle (CMG), which I just can’t seem to part with, despite the recent dip!
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