My general market indicators remain at zero, and the QQQQ finished the 51st day of its short term down-trend. There were 3 new highs and 458 new lows in my universe of 4,000 stocks on Tuesday. This is not the time to buy stocks at new highs in the hopes of seeing them continue to a series of new highs. One of the key GMI indicators is positive when 100 stocks hit a new 52 week high in the prior day. The last time this occurred was on September 19 (at 319). The GMI has been 0 or 1 since September 2, during which the QQQQ has declined 33.9%. Since September 2, 95 of the NASDAQ100 stocks declined, and 39% have declined between 40%- 81%. RIMM, one of the darlings of the prior bull rise, is now down 61% since September 2nd. One fights the general market trend at his/her own peril. When the trend is down, I go to cash or go short…..
As a sign of the times, a new Global Dow Index of 150 large companies around the world has just been launched. Now we can more easily track the global market carnage as it occurs……..