Dead cat bounce?

GMI0/6
GMI-21/9
T210826%

It will take a while to see if the rise on Tuesday was more than a dead cat bounce.   Tuesday was the 16th day of the current QQQ short term down-trend. I remain in cash and hedged.

6 thoughts on “Dead cat bounce?”

  1. Dr Wish,
    I’m still trying to catch-up!

    On June 6, you stated the following.
    “So, I am forced to the sidelines in cash in my trading accounts.”
    “I still allocate new university contributions to equity mutual funds so that I dollar cost average into them as prices fall. Then, when the bottom is in, I slowly reinvest the large sum of money that I had moved out at the beginning of the decline.”

    Does the second statement mean that you are still partially invested in your university pension mutual funds? If so, I missed your post where you sold off some of your university pension.

    Thanks,
    Tom

  2. On 3 June IBD said “we are back into a correction”; you said QQQ short term downtrend for 7th day. All this came true. Do you find that IBD is always right in such predictions? Or, only 50% of the time? Thanks

  3. Tom: You need to take in the information you receive from all sources and after considering your risk tolerance decide whether to exit the market. I have not yet exited my university pension mutual funds because of the limits on transfers for market timing. With no such limits, I would have begun to exit the market in phases. I am fully in cash or hedged in my trading IRA.

  4. Thank You! I agree. I also have limits on transfer due to market timing and want to make sure of Stage 4 decline before exiting. Per your suggestion am reading Stan Weinstein’s book and studying historical Stage 4 declines but am having trouble identifying confirmation.
    Tom

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