The GMI is still zero and a long way from turning positive. There were 23 new highs and 257 new lows on Tuesday in my universe of 4,000 stocks. 54% of the Nasdaq 100 stocks, 52% of the S&P 500 stocks and 73% of the Dow 30 stocks advanced. The 50 day average of the IBD mutual fund index is about to cross below the 200 day average, indicating that managers of growth stocks funds are doing poorly. When that happens, I also do not do well holding growth stocks. With the major indexes below their 30 week averages (never mind their 30 day averages) the markets remain in sustained down trends. Tuesday was the ninth day (D-9) of the current QQQQ short term down trend. However, the QQQQ has closed below its 10 week average for nine weeks. I typically make profitable long trades when the QQQQ remains above its rising 10 week average. The GMI indicators have kept me out of all major market declines since 1995. I remain 100% in cash as I prepare to go on vacation until early August.
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