The GMI remains at +1 and Tuesday was the fourth day of the current short term decline in the QQQQ (D-4). Only 41% of the Nasdaq 100 stocks rose, along with 33% of the S&P 500 stocks and 53% of the Dow 30 stocks. Only 24% of stocks are in a short term up trend. There were 42 yearly highs and 62 new lows in my universe of 4,000 stocks. I was surprised we got no bounce back on Tuesday. My indicators have turned so negative that I transferred my pension funds out of mutual funds and into money market funds. Maybe we should all go away in May, until October. My puts all rose on Tuesday. In fact, one of my shorts, CCL, collapsed on Tuesday. More and more, I am finding that stocks in trouble are telegraphing their declines in advance. One needs only to read the high volume declines that they show weeks before the sudden drop. Bad news is always hidden from the public while the insiders unload their shares (following the Enron trial?). One must therefore look for the signs of high volume selling by the big boys in order to identify potential shorts. If we wait for the bad news to become public before we short, we arrive late to the party…..
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