The GMI rose to 1 (of 6) and the more sensitive GMI-R to 4 (of 10). There were 5 new highs and 21 new lows in my universe of 4,000 stocks on Wednesday. The QQQQ will change to a short term up-trend, if it holds on Thursday. I sold my QID and bought a little QLD. I will accumulate QLD (the ultra long QQQQ ETF) if the up-trend gets going. The key is to start with a small pilot buy and to increase my position only if the trend continues. I also set close stops in case the trend weakens. In this way I have the greatest position (and risk) only after the movement is consistent with my initial purchases. I learned this strategy from the great Jesse Livermore (see Reminiscences book by Lefevre below), who made small pilot buys and then pyramided up only if the market confirmed his judgment. I never add to a losing position. I hope to get in on a trend that will last for weeks or months, not minutes or days.
Month: January 2009
GMI: 0; GMI-R: 1; T2108: 48%
The GMI-R rose to one on Wednesday. The QQQQ completed the 9th day of its short term down-trend. However, the QQQQ is just below its critical moving average. A rise from here could turn the short term trend positive. The market seems able to hold up under a flood of bad earnings. So, the selling may be done for now. This appears to be a time of considerable back and forth in the market. I remain mainly in cash.
Welcome to the new *and improved* Wishing Wealth
Hello and welcome to the new home of Dr. Wish’s Wishing Wealth Blog. I’m your host: Mr. Wish.
My dad has been slaving over this blog for a few years now and I have always felt incredibly inspired by his commitment and devotion to his field. And you’re probabaly thinking, jeez aren’t you lucky to have a dad who’s so savvy about the stock market, you’re gonna be filthy rich if you just follow his financial advice. Unfortunately for me the only advice I have ever taken from him is to follow your passion. My passion is designing web sites. Enter: the new wishing wealth blog.
I designed this site as a dedication to my dad, because he has provided me with all the support in the world to do what I love. I wanted to make sure I had the chance to return the favor. Keep up the good work, pops.
Now let’s get down to business and let me introduce you to some of the features of the new site: