T2108 calls bounce again! Will rally hold?

GMI0/6
GMI-R1/10
T210811%

The T2108 was in single digits for six consecutive days before Tuesday.   Anytime this index is below 10, the market is oversold and   it is a good time to look for a rally.   There were 6 new highs and 148 new lows on Tuesday in my universe of 4,000 stocks on Tuesday.   Tuesday was the 16th day of the current short term down-trend of the QQQQ.   It may take weeks before we find out whether Tuesday’s rise will hold.   The GMI-R is now up to one (of 10). Perhaps the safest approach for me now is to take on some long positions and buy some puts for insurance, the strategy I described in my prior post.

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