The GMI is back to 1, for the first time since last February. The QQQQ, however, still remains in a longer term up-trend. While I therefore remain invested in mutual funds in my university pension, I remain largely in cash and short in my trading IRA. On Thursday, my IRA account gained in value. The key is to get out of the market during down-trends and to look on from the sidelines, in cash or short–at least in my trading account. Thursday was the 2nd day of the new QQQQ short term down-trend. Note that the Worden T2108 is now at 20%, at a level where some market bottoms have occurred.
Dr. Wish, what is your opinion regarding stop limit orders as opposed to plain stop orders? It would have been terrible to have gotten stopped out of a stock like PG at 50 only to see it rise back to 60 minutes later.
When I set a stop it means I want to get out immediately if the stop price is triggered. In the case of PG, it showed weakness days before the tumble when one could have exited easily. You are correct, though, that a stop can kill you on a day like Thursday.