Don’t fight the trend; QQQQ in 7th day of short term down-trend; bear market bottoms are marked by huge up volume

GMI0/6
GMI-R0/10
T210815%

With the GMI and GMI-R at zero, I think it is not the time to fight this down-trend.   The major indexes look terrible and the QQQQ completed the 7th day of its short term daily down-trend within a longer weekly down-trend.

The key to survival in the market is to lose as little as possible during the worst times.   Conserve money so as to be ready for the inevitable turn.   I have studied all of the prior bear market bottoms and a common characteristic is huge weekly up volume.   We have not had anything like that.     We need to sit tight and wait for several days of   large volume rises. I remain short and mainly in cash.

Take the poll to the right and let’s see if it is a useful contrary indicator.

6 thoughts on “Don’t fight the trend; QQQQ in 7th day of short term down-trend; bear market bottoms are marked by huge up volume”

  1. I’m feeling we’ll drift sideways, maybe a little higher through the vernal equinox, then turn down again.

    Take the poll to the right and let’s see if it is a useful contrary indicator.

    Fading your readers, Eric?

  2. I took a small hit with TSYS, from 9.3 to 9.0. It was a failed breakout, so i moved back into NVDA, from 7.41 3 days ago. I’m still holding and its hovering around 8.3, i think i may sell out as i think the market will close lower tomorrow. I do not think the market is at a bottom yet.

  3. TSYS just declared a dividend, wow! You can read almost any good news from the chart long time before the message is out there. I will be watching TSYS, when it breaks out above 10 (pivotal point – see Jesse Livermore’s book), I’m a buyer!

  4. The only way to make some profit in this market is to become a DAY trader, as I did today with ALGT, gain a little each day. How does the saying go?: Kernel by kernel the chicken fills up its stomach!

  5. Eric, are you still keeping TSYS, or did it get below your stop loss? Do you think that its “cup/handle” still holds water…or is still viable? TSYS did have an exhaustion gap when you got into it, and that is one reason I did not buy this stock. Keep up the nice work on this blog!

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