GMI:1; GMI-R: 3; Mainly in cash.

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. 

1 thought on “GMI:1; GMI-R: 3; Mainly in cash.”

  1. 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.

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