GMI: 0; GMI-R: 0; T2108: 3%; 38th day of QQQQ short term down-trend
My General Market Indicators (GMI, GMI-R) remain at zero. The Worden T2108 Indicator is at 3%, still in extreme low territory where bottoms typically occur. Thursday was the 38th day of the current QQQQ short term down-trend. There were 4 new highs and 1,139 new lows in my universe of 4,000 stocks on Thursday. October 10 is the last day we had more new lows (2,832). So, many stocks were quite weak on Thursday, at least at the day's low. I have a "Rocket" scan in TC2007 that I run each day. I have used it in bull markets to find promising stocks to purchase. At Thursday's close, only 5 stocks out of 4,000 met my stringent criteria for possible rockets. Similarly, my "Darvas" scan based on that great trader's stock picking criteria yielded no stocks. This clearly is a market with few winning stocks on the long side. I therefore remain mainly in cash, while holding a few puts on stocks in down-trends.
Comments ( 1 Comment )
bowler added these pithy words on Thu, 10-23-08 at 10:31 pmHi Dr. Wish
What are the criteria you use for Rocket scan? It will be interesting to see how they behave in this market. Thanks for the sharing your thoughts.
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