Posted Monday, October 20, 2008 @ 9:02 pm by Dr. Wish
GMI: 0; GMI-R: 0; T2108: 3%; 34th day of QQQQ short term down-trend
I was away all weekend and this post will therefore be short. No changes in any of my indicators. We remain in a down-trend and the safest place to be is on the sidelines in cash or a little short. There were 2 new highs (EBS and DRS) and 155 new lows in my universe of 4,000 stocks on Friday. Buying stocks at new highs is unlikely to be profitable right now. On the other hand, 822 (96%) of the 854 stocks that hit a new low 10 days ago closed lower on Friday than they closed 10 days ago. Thus, shorting stocks at new lows 10 days ago was likely to have been profitable. When considerable numbers of stocks that hit new highs keep advancing I will go back to buying IBD100 type growth stocks again.
Add a Comment
