GMI falls to 1; in cash and/or hedged with put options

GMI1/6
GMI-22/8
T210839%

The GMI has fallen to 1 for the first time since last March.   The IBD Mutual Fund Index is now below its 50 day average, a major negative sign for me.   I cannot make money on the long side when these growth mutual funds do not do well.   I am therefore   mainly in cash in my trading accounts, with my few long positions protected with put options. The key to success in the market is to lose little money when the odds are against me.   There is a time to be out of the market, ready to jump in if the trend reverses.   Tuesday was the second day of the new QQQ short term down-trend.   I remain fully invested in mutual funds in my university pension because the longer term trend remains up—for now.

2 thoughts on “GMI falls to 1; in cash and/or hedged with put options”

  1. Hello Dr. Wish, quick question…where do you see the chart for the IBD Mutual Fund Index? I subscribe to IBD but the chart on the paper does not show the 50-day line.

    Thanks

    Carlos

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