Bounce fails, virtually all stocks decline–short and in cash
The one day bounce begun last Friday could not even hold on Monday. I would be nuts to fight this severe down-trend. The QQQQ short term down-trend completed its 14th day on Monday, having fallen 7% since I identified it. (Trend followers can only identify a trend, sometime after the peak, so the QQQQ is actually down more than 11% from its peak.) Since the first day of the new down-trend (D-1), 97% of the Nasdaq100 stocks, 100% of the Dow 30 and 96% of the S&P500 stocks have declined. This is why determining the general market trend and trading consistent with it is so important. People who have stayed long have had their portfolios decimated. In my IRA trading account, I am in cash and long a little gold via GLD. In addition, I continue to hold a short position in China stocks through the ultra short ETF, FXP, and am short GOOG (via a put option) , which has popped up repeatedly in my submarine scan. Today’s pre-market futures indicate another down opening…………
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