Technicals are strengthening

GMI

4/6

GMI-2

7/8

What is the GMI?
 

WORDEN T2108

41%

GMI back to 4 (of 6) and T2108 is at 41% and is at highest reading since July 17. T2108 measures the percentage of NYSE stocks that are above their 40 day simple moving average and shows that large cap industrial stocks may have bottomed.

T210808172015I am beginning to wade back into biotech stocks. I like AMGN and CELG.

Still cautious, mainly in cash; $HD shines

GMI

2/6

GMI-2

4/8

What is the GMI?
 

WORDEN T2108

37%

The GMI still is on a Buy signal, but I am content to wait this market out. Note that HD had a green line break-out (GLB) to an all-time high last week. HD reports earnings this Tuesday.

HD08142015

 

GMI08142015

On sidelines.

GMI

3/6

GMI-2

4/8

What is the GMI?
 

WORDEN T2108

33%

Another bounce

GMI

1/6

GMI-2

3/8

What is the GMI?
 

WORDEN T2108

34%

With the put/call ratio still above 1, bearishness is high and the bounce is on. I am patiently waiting on the sidelines in cash. The GMI could go to Sell with a weak day Thursday.

Don’t fight the tape

GMI

3/6

GMI-2

3/8

What is the GMI?
 

WORDEN T2108

35%

I remain in cash on the sidelines. It took me years to learn that I don’t have to be in the market all of the time. It is time for a summer vacation.

GMI back to 6 (of 6); Buy signal intact–for now

GMI

6/6

GMI-2

5/8

What is the GMI?
 

WORDEN T2108

40%

The bounce came after an oversold position with the put/call ratio above 1.  Now I need to wait to see if this is a dead cat bounce or something with legs. IBD still sees the uptrend under pressure and there were more new lows than highs on Monday. The devaluation of the yuan may make it harder for the Fed to raise rates in September. The index futures suggest a weak opening. I remain on the sidelines in cash in my trading accounts.

 

GMI back to 2 (of 6)–100% cash

GMI

2/6

GMI-2

3/8

What is the GMI?
 

WORDEN T2108

32%

With the GMI at 2, if Monday brings another weak day, the GMI will issue a Sell signal. I do not remember a time when the GMI was so unstable. I am therefore in cash in my trading accounts and on the sidelines.

GMI08072015

GMI back to 3

GMI

3/6

GMI-2

3/8

What is the GMI?
 

WORDEN T2108

34%

Whipsawed yet again! In cash with a small short position. GMI could flash a Sell signal if market weakness continues into early next week.

Flying on instruments was correct! $GMCR plummets, as forecasted by its chart…

GMI

5/6

GMI-2

6/8

What is the GMI?
 

WORDEN T2108

36%

My GMI said to Buy on 7/30 and it was right! I wish I had had the courage to follow it earlier. I am adding long positions. Check out the daily chart of the QQQ. Note the GMI signals marked with red (sell) and green (buy) arrows.

QQQ08052015None of my university students would have got stuck holding GMCR! As instructed by Stage Analysis, I never hold a stock trading below its declining 30 week average (solid red line). This weekly chart shows that GMCR first flashed a Stage IV sell signal in January.

GMCR08052015

Cautious

GMI

5/6

GMI-2

4/8

What is the GMI?
 

WORDEN T2108

35%

Markets are trying to make up their mind. I am invested a little in long positions and mainly in cash.



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