All six of the short and long term GMI indicators are positive for the first time since June 5, 2008, before the big market decline began. The more sensitive GMI-R is now 10 out of 10. I am therefore getting fully invested in my IRA and university pension accounts. Of course, the market could turn down, but I believe that I am am going long with the odds in my favor. If the up-trend continues I will highlight individual stocks. There were 124 stocks in my universe of 4,000 at 52 week highs on Thursday.
Month: July 2009
Up-trend continues; But T2108 near peak; 25 stocks at all-time highs
The up-trend continues but the T2108 is at 85%, about as high as it gets. That does not mean we will get a decline, for it can stay above 80% for weeks. I went to an investor’s group meeting this weekend and was amazed to find that many sophisticated investors are resisting this rally. About two thirds expected an imminent market decline. I am incredulous that people would rather fight a trend than ride it. If one puts in stop losses to control risk, why not ride the market until it falters. No one can consistently know when a trend will end. Stop guessing! Meanwhile, the GMI
Up-trend is here; 50% invested; some rocket stocks
To be successful in the market, I have to block out all other opinions and look at what the market is telling me. The market successfully tested support last week and the 30 week averages for the SPY, QQQQ and DIA are turning up. This is a classic Weinstein Stage 2 pattern. I get out of the market when the 30 week averages turn down and back in when they turn up. I know this seems simplistic and naive, BUT IT WORKS!! It keeps me on the right side of the market’s primary trend. And 70-80% of stocks follow the general market’s trend–end of story. The GMI is in an up-trend mode, going between 4 and 5.