The put/call ratio is at an extreme level, about 1.3, implying a bounce soon. It is a contrary indicator such that when there are more puts than calls, like on Friday, the market is likely to rebound.  And the T2108 is very low, at 16%. The GMI is now zero for the first time since [...]

With the GMI at 1 and the GMI2 at 0 I am very reluctant to hold stocks.  My trading accounts have been in cash for over a week.  My university pension accounts remain invested in mutual funds, but I am considering raising some cash if we get a good bounce this week (see below).  Too [...]

I ran a new PCF in TC2000 this weekend that detects stocks that give a daily sell signal after being over-bought.  I found that 20% of the Nasdaq100 and Dow 30 stocks and 21% of the S&P 500 stocks met this criterion as of Friday’s close. Furthermore, 79% of the Nasdaq 100 stocks closed Friday [...]

When I presented at the DC Worden Seminar two weeks ago, I asked the audience how many would buy a stock at a new high.  Only about 5% of the 200 people in attendance raised their hands. I was incredulous. All of them admitted they wanted to buy a stock that went to the moon, [...]

The QQQ short term down-trend reached its 5th day on Friday and I took a small position in QID, the leveraged inverse ETF that rises as the QQQ (Nasdaq 100) Index declines.  If the decline continues I will add more QID. I have learned that it is most anxiety producing to bet on a  trend [...]

I had a wonderful time meeting many of you and sharing some of my experiences trading the markets.  There are a number of loose ends from my presentation that I wanted to clear up today: 1. Worden will produce the videos of my sessions and of the entire seminar series.  Call:  1-800-776-4940 or email: support@worden.com.  [...]

As you know, I use the Worden TC2000 charting software daily to follow the market and to teach my university course on technical analysis.  The Worden group has graciously invited me to speak at their seminar on Friday and Saturday.  You can check out the agenda on their site. I hope to meet many of [...]

Market remains in up-trend but IBD says “Uptrend under pressure.”   Until first quarter earnings are released later in April, there could be some weakness.  There is nothing to push the market up until strong earrings are reported.  The GMI and GMI-2 remain at 6 each.  But the short term indicators like MACD and stochastics [...]

We may get the last minute “window shopping” by mutual funds this week, as they  purchase recent stock winners like AAPL to enhance their portfolios. Then we wait for first quarter earnings……. Meanwhile, the GMI buy signal from 12/23  remains in place. All of my indicators are positive.  Friday was the 61st day of the [...]

Since the GMI buy signal on 12/23, the QQQ has advanced 15.9%, and the double long QQQ leveraged ETF, QLD, has advanced +33.9%.  I have repeatedly written that riding the leveraged long index ETF during a sustained up-trend is easier and more productive than looking for the rare stock that will outperform it.  For example, [...]