Archive for the ‘ General Market Index (GMI) table ’ Category
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Curiously, there were still more now lows than highs on Friday.Â This may be because the SPY and DIA are not as strong as the QQQ, which is composed mainly of nonfinancial tech stocks.Â The QQQ is clearly in the beginning of a RWB up-trend and heading to new highs. But the SPY and DIA […]
I wrote weeks ago that I had exited the market in all of my accounts and wanted to see how the rebound from the summer lows proceeded. (I cringed as the market recovered.) The market is now at a very critical point.Â The indexes could not hold new highs and have turned down. As I […]
The 20 year treasury bond ETF, TLT, is now entering a Stage IV decline. Interest rates are on the rise and this is never good for the market.Â People will be able to earn more from savings deposits and will be less likely to invest in stocks. And the rising rates will cause the dollar […]
The SPY is fighting its way back from the summer swoon. It has taken 9 weeks to retrace the decline that occurred in 2 weeks in August. (Stocks always decline faster than they rise.) However, note the overhead resistance coming up and the fact that the 10 week average (blue doted line) is still far […]
Here I am in cash and not participating in this rebound. Then again, I did not have to worry about the summer decline as I was safely on the sidelines. So what to do now? True, according to the Sell in May mantra, one should get back into the market at Halloween, as Mark Hulbert […]
The QQQ’s 10 week average (blue dotted line) is still below its 30 week average (solid red line). A sign of strength–the 4 week average (red dotted) has now crossed above the 10 week average. I remain on the sidelines, in cash.
GMI may flash a Buy if Monday is strong. I am not ready to wade back into this market, however, until the QQQ retakes its 30 week average (red line), currently at 107.87. I also want to see its 10 week average (blue dotted line) back above the 30 week.
While the short term trend is now up, I do not have confidence in a change until it lasts 5 days. While this is a nice rally, the longer term trends are still down–for now. Here is the GMI table I should have posted yesterday. The T2108 zoomed to 45 on Monday.
Based on their methodology, IBD says in Monday’s editionÂ that Friday’s rise constituted a follow through day and that they believe that the marketÂ is now in a “confirmed up-trend.”Â I find IBD’s market calls to be analogous to my very short term trend indicator for the QQQ (currently in the tenth day of a […]
Nobody knows when this market will find a bottom. Note in this “naked” weekly chart of the QQQ, the 4wkavg(red dotted)<10wkavg(blue dotted)<30wkavg (solid red line). This is my primary definition of aÂ “submarine” pattern. It shows a stock or ETF in a significant down-trend. I am in cash in both my university pension and all […]