I suspect Monday’s morning rally was a last chance to unwind long positions. Given the internal weakness of the indexes described in my weekend post, this market is likely to be heading lower. 
The GMI rose to +2, because there were 149 new yearly highs. 60% of the Nasdaq 100 stocks, 47% of the S&P 500 stocks and 50% of the Dow 30 stocks advanced on Monday. The percentage of stocks above their 10 week averages increased to 42%. Monday was day 5 in the current QQQQ down-trend (D-5)…………
Since September 12 when the QQQQ reached a minor peak, 82% of the Nasdaq 100 stocks have declined. During this same period, 82% of the 239 industry group averages tracked by TC2005 also declined. In contrast, the following industry groups have advanced the most in this weak period: Gold (+10.39%), Silver (+8.65%), Copper (+7.63%), Steel and Iron (+7.32%) and Metals and Mining (+5.75%), followed by a host of energy related industries. Jim Rogers was correct when he proclaimed that we are in a major bull market in commodities. Those of us who typically trade the tech growth stocks are probably missing this boat.
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