The GMI and GMI-R remain at zero. On Friday, there were 23 new highs and 2,832 new lows in my universe of 4,000 stocks. This is the largest number of daily new lows since I started this blog three years ago. The Worden T2108 indicator remains at 1%, about as low as it gets. This is the time to be on the sidelines in cash. No one knows when this down-trend will end. Friday was the 29th day of the current short term down-trend in the QQQQ…
It is amazing how Jim Cramer is now claiming to have been urging people to be in cash. The truth is that he and the other market pundits have been urging people to buy stocks all the way down. At no time did any of them say to go mainly to cash. Cramer has repeatedly ridiculed the use of charts. But it is the chart patterns that warned me to get out of this market recently, and in 2000. I started this blog to give the little guy (and gal) a chance to learn how to discern the market's trend. When the trend is down one should not be looking for stocks to buy. One goes to cash or goes short. There will be plenty of time to ride the next up-trend once it has proven itself….
It is a crime that we do not teach people how to think for themselves when they invest their hard earned money. High schools and universities should require students to attend classes in financial planning and investments. I teach an honors course at the university and my students have a thirst for knowledge about the market. They often report that my class on technical analysis is the most practical course they have attended and that it should be required for all students. Why do we fail to educate our youth about such an important topic? Think how many of our ageing baby boomers are now looking at greatly reduced assets for retirement. It is painful to me to consider the ramifications of this colossal failure to educate our citizens about how to manage their stock market investments.
As always great information… I envy your students–I would love to take your investing course! Thanks.
Cramer has been wrong more often than not.
I remember that one day he said to get out of banks because they will reach single digits soon……
Than was the day they turned around and BAC for instance went from 18.50 to the 40 area.
Hey Dr. Wish, Steve here from your 2006? stock class (I forget the year..)
For starters, Cramer’s recommendations seem like a great contrary indicator. I also wonder what would happen were everyone to be a technical trader. For us to sell a stock, there has to be a buyer at the other end with a different outlook or strategy. I suppose the slow movements of billion dollar funds will always open opportunities for shorter-term stock operators. Still, were everyone to avoid stocks when the indices were on the decline, it seems like the market would go to zero, right?
Is there anyway we could access your honors class, either online or reviewing the materials? Are your lectures online? You’re doing a great service to the investing public by constantly being the voice of caution.