I think of the market action as being similar to a rubber band that is stretched to an extreme on the down-side or  the up-side until a catalyst happens that releases it so that the market index snaps back towards the middle and then the process starts all over again.  Thus, last week it was [...]

A flat or up day on Friday will turn the QQQ short term trend to up. OII has broken from a base to a new all-time high.

IBD still says  “market in correction.” However, the GMI needs to stay above 3 for one more day for me to have a bullish signal. The market is bouncing from very oversold levels.  Last Monday I wrote that the market closed on Friday with 86% of the Nasdaq100 stocks having a daily stochastics below 20.  [...]

According to IBD, the market remains in a correction.  Time for me to be mainly in cash or short.

I remain skeptical about this rally.  It may offer an opportunity to short.  Nevertheless, five stocks with strong fundamentals hit a new high on Monday:  NGLS, ASPS, PZZA, PNRA and HITK.

The stochastics for the QQQ is very oversold, at 7.6% and the T2108 is getting close to oversold, at 25%.  I think this is not the time to begin to short.

The daily 10.4 stochastics indicator for the QQQ is now in oversold territory, at 9.91.  That means that the Nasdaq 100 index is probably set to bounce within a few days.    I wrote about HITK on September 19 when it broke out to a new all-time high.  HITK still keeps rising, as shown by [...]

The GMI went to zero for the first time since October 7.  The IBD Mutual Fund index is now below its 50 day average.  It is good to be on the sidelines. Keep an eye on HITK–it came up in my DARVAS scan. Another stock that came up in my Stage 4 scan is HLF, [...]

I am in cash in my trading accounts.  With the GMI at 1, there is no reason to hold long positions. Note that the QQQ has now closed below its 10 week average, but the Spy is still above it.  With the T2108 indicator at 58%, the market is not in oversold territory. I would [...]

The GMI and GMI2 each skidded down to 1.  I am going to cash in my trading accounts.  My longer term money in my university pension remains in mutual funds–for now.