Posted Wednesday, June 23, 2010 @ 7:00 am by Dr. Wish
GMI falls to 2; Up-trend in doubt; Remain very defensive
There is again a split in the market between the nonfinancial tech stocks in the QQQQ and the big cap industrial stocks, reflected in the Dow 30 and S&P500 indexes. A similar split occurred in the 2008 decline, when financial stocks tanked. These indexes are in down-trends, even as the QQQQ remains in a short term up-trend. But the QQQQ daily and weekly up-trends are now also in danger of ending. I am going largely to cash and setting stop losses very close to support. We might get that head and shoulders top I have been discussing. This is not the time to be brave. Better to conserve cash and wait on the sidelines for signs of a real up-trend.
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