The GMI fell back to 1 and the GMI-R is now at 3. There were 69 new highs and 118 new lows in my universe of 4,000 stocks on Monday. One of the tech leaders, RIMM, broke badly–not a good sign. AAPL and GOOG also declined, but not greatly. If these leaders break down, it is a serious omen for the general market. 34% of the Nasdaq 100 stocks are now above their 30 day averages, up from 3% on November 26. Monday was the sixteenth day in the current QQQQ short term down-trend. We should know in a few days whether this rally will turn the trend up or fail. I prefer to be mainly in cash until the GMI rises to above 3.
agreed the next couple of days will be very telling. With today’s mild pullback, I put some more $ to work on long positions (actually moved some of NDX positions to 2X NDX positions, thus using a bit of leverage). Am sticking my neck out a bit here, but indicators I follow are saying a bottom is very likely in and trend is turning up. Thus am taking an educated risk.