3rd day of $QQQ short term up-trend

GMI

5/6

GMI-2

8/8

What is the GMI?
 

WORDEN T2108

50%

GMI is back to 5.

GMI signals “Buy”

GMI

4/6

GMI-2

8/8

What is the GMI?
 

WORDEN T2108

42%

It is very difficult for me to fly by instrument, but the GMI has just issued a Buy signal. Talk about head fakes! I am mainly in cash in my trading accounts and making small bets.

GMI08152014

New $QQQ short term up-trend

GMI

4/6

GMI-2

8/8

What is the GMI?
 

WORDEN T2108

41%

If the GMI holds 4 or more on Friday, it will flash a Buy signal.

IBD calls new market up-trend;

GMI

2/6

GMI-2

8/8

What is the GMI?
 

WORDEN T2108

37%

My $QQQ short term down-trend reached its 9th day on Wednesday.  A strong day on Thursday will start a new short-term up-trend.  I cut back on my shorts and started building a long position in TQQQ. This market could still go in either direction.

8th day of $QQQ short term down-trend

GMI

1/6

GMI-2

6/8

What is the GMI?
 

WORDEN T2108

33%

This market is still struggling to make up its mind. It could break either way.

7th day of $QQQ short term down-trend

GMI

2/6

GMI-2

8/8

What is the GMI?
 

WORDEN T2108

34%

GMI-2 recovered to 8 (of 8).

Critical market juncture–bounce or plummet

GMI

1/6

GMI-2

3/8

What is the GMI?
 

WORDEN T2108

28%

The market came back enough on Friday to open the possibility of a meaningful bounce. The QQQ and AAPL closed just above their 10 week averages.  This week will tell us if this rise will hold. On the bull side is the fact that the T2108 and the daily stochastic indicators reached oversold extremes last week, and the QQQ has found support at its lower 15.2 daily Bollinger Band. On the bear side is the fact that this bounce has been weak, coming after a high volume decline.  The question is whether the market can rebound to new highs or whether this rebound will fail and lead to a larger decline. Check out this daily chart of the QQQ.

QQQdaily08092014

The recent red spikes indicate daily declines on above average volume. The QQQ is holding right above its 50 day average (green dotted line).  But the 10 day average (blue dotted line) is crossing below the 30 day average (solid red line) for the first time since April.  The QQQ would need to close above 95.44 for me to have confidence in a bull move.  AAPL also has a similar pattern.  Thus the next few days are critical.

The GMI registers  1 (of 6) and remains on a Sell signal.

GMI08082014

 

5th day of $QQQ short term down-trend; $QQQ closes below 10 week average; $AAPL on precipice

GMI

1/6

GMI-2

1/8

What is the GMI?
 

WORDEN T2108

23%

With the new short term down-trend reaching its 5th day on Thursday, I am slowly adding to my positions in the inverse 3X ETF’s SQQQ and SDOW. With the QQQ now below its 10 week average, my ability to make money trading on the long side is slim. This market looks like it wants to go down. AAPL is sitting on its 10 week average (blue dotted line) and a close below it would be a reason for me not to hold it. Click on chart to enlarge.

AAPLwkly08072014

4th day of $QQQ short term down-trend

GMI

1/6

GMI-2

3/8

What is the GMI?
 

WORDEN T2108

22%

Waiting to see if this down-trend holds.

3rd day of $QQQ short term down-trend; IBD: correction here; Small caps ($IWM) in trouble

GMI

1/6

GMI-2

3/8

What is the GMI?
 

WORDEN T2108

20%

A close of the QQQ below 94 would be a serious sign of weakness.  QQQ closed Tuesday at 94.59. IBD has just labeled the “market in correction.” Maybe they heed the GMI signal??!! I am mainly in cash and short the market in my trading accounts.

Note this ominous chart of small cap stocks reflected in the IWM ETF.  There is a double top (horizontal red line), a decline below the critical 30 week average, and a lot of red spikes of high volume on down weeks.  What is this chart telling us about the market?

IWMwkly08052014

 



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