The GMI is still +1 and the market looks pretty bad. Housing stocks look real bad. I talked about shorting them weeks ago. I did, for a while, and am now waiting for a bounce to put on a new short. Only 21% of the 4,000 stocks in my universe of stocks remain in a short term up-trend. There were 38 new highs and 140 new lows on Monday. Only 31% of the Nasdaq 100 stocks advanced on Monday, compared with 17% of the S&P 500 stocks and 33% of the Dow 30 stocks. Only 30% of stocks closed above their 10 week averages. This is the fourth day (D-4) of the QQQQ down-trend. More stocks are closer to their 52 week lows (14%) than to their highs (11%). In my humble opinion, only incurable optimists, market addicts and masochists should buy stocks during this confirmed down-trend. There is plenty of time to go long after the GMI signals an up-trend.
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