Short term down-trend continues, mainly in cash; New edition of O’Neil classic

There were 32 new lows on Friday in my universe of 4,000 stocks, the largest number since March 12th!   There were only 9 new highs.   Friday was the 5th day of the new QQQQ short term down-trend.   Why try to fight the down-trend when one can sit calmly on the sidelines?   The major positive I still see is that the longer term   averages I follow are still curving up.   If they should be violated on the down side, I will even go to cash again in my university pension.   I remain only 15% invested there.   Meanwhile, The GMI

and GMI-R remain at 1.   If the weekly QQQQ index turns negative we will probably be in a major longer term decline.  Note that the QQQQ and SPY are both below their 10 week averages.   I find it difficult to trade profitably on the long side when this is the case.   Also, only 10% of the Nasdaq 100 stocks closed with their MACD above their signal lines.   The MACD provides an early signal of an advance   when it rises above its signal line.   The T2108 is at 29%, not really in oversold territory where reversals occur.   I am still watching SXCI and HMSY and ORLY, which look like they could rise if this market should turn.   For now, I am mainly in cash.

William O’Neil has published a 4th edition of his classic on the market, shown to the bottom right.   His book really is an owner’s manual for his newspaper, IBD.   The new book has added a huge selection of charts of the best performing stocks ever.   By studying these chart patterns one can learn how to spot new winners.   I never made money trading until I began reading IBD.   And O’Neil’s book really summarizes what I had learned from most of the prior stock gurus who made fortunes and whose books are also listed below.