The GMI remains at 1 (of 6) and the GMI-R at 2 (of 10).  The T2108 is back to 39%, still in neutral territory.  Time to be in cash and or short. I reviewed the statistics on the past 24 short term down-trends for the QQQQ.  I found that once a down-trend lasted at least [...]

The QQQQ bounced on Friday from very oversold daily stochastic readings.  The daily stochastic remains oversold, so Friday’s bounce may last a little longer.  However this weekly GMMA chart of the QQQQ  (click on to enlarge) shows all of the moving averages converging and flat.  We are just going to have to wait for the [...]

While the QQQQ is in a short term and long term down-trend, the daily stochastic is in deeply oversold territory. A bounce may be imminent.  This is therefore not the time to initiate new shorts.  I am sitting on the sideline, mainly in cash with some short positions.

GMI and GMI-R are now both 1. Wednesday was the 9th day of the current QQQQ short term down-trend.  30 week average is starting to curve down–this typically happens at the beginning of a major down-trend. The Worden T2108, at 42%, is far from oversold territory where bottoms typically occur. We must be very careful. [...]

I presented a webinar along with Julia Ormond Tuesday evening.  If you missed it, you can access the archive at worden.com starting Wednesday. I talked about my Submarine Scan and sent people the TC2007 PCF for it. Meanwhile, the GMI and GMI-R are back to zero. I hold only short positions and my account rose [...]

The QQQQ short term down-trend has now reached seven days.  With the GMI at one, I am mainly in cash with a few short positions.  I also own some TYP, that is designed  to go up about 3X as much as tech stocks decline. The longer term averages for the QQQQ remain flat.  The time [...]

I am inviting all of you to attend my second Worden webinar with the talented Julia Ormond  Tuesday evening.  To register for the free webinar, go to www.worden.com.  If you miss it or missed my first webinar, the Worden staff archive them on their site for later viewing.  I will talk about the current market [...]

I think it best to cash out and wait on the sidelines.  This market has not exhibited a steady trend for quite a while.  And we are entering the dreaded September/October period. One thing about moving averages–they only work in a defined trend.  The averages are flat and prone to whipsaws.  See the GMMA weekly [...]

The rally continues, with 120 new highs in my universe of 4,000 stocks on Wednesday.  Auto-related stocks are strong:  GMA, AZO and MGA hit highs.  Another strong auto stock is TTM, which this monthly chart shows broke out this week to an all-time high (click on chart to enlarge).

The GMI and GMI-R remain at one, reflecting the weakness in the short and longer term averages for the major market indexes. But there were 150 new highs and 25 new lows in my universe of 4,000 stocks on Tuesday.  The SPY, QQQQ and DIA are still short term oversold, indicating that this rally may [...]