Day 6 of QQQ short term-down-trend; T2108 = 10%

GMI0/6
GMI-20/8
T210810%

We completed the 6th day of the new QQQ down-trend on Wednesday.   The Worden T2108 indicator is at 10%, up a little.   I wish I had the courage to buy a little of QLD.   The Worden T2108 indicator rarely goes into single digits and is a sign of an extremely oversold market. I saw this interesting article about technical analysis this morning.   Technical analysis always works better than fundamental analysis when markets decline a lot.   Technical analysis tracks human psychology and behavior. Fundamental analysis is based on company “facts” and subjective interpretations   about their business.

4 thoughts on “Day 6 of QQQ short term-down-trend; T2108 = 10%”

  1. The T2108 explains the status or condition of the market at a point in time, it does not really give a buy signal. It is not like a candlestick pattern or a moving average crossover or an IBD follow-thru day.

    Perhaps with an IBD “day 1” occurring on Tuesday, waiting for the follow-thru day to take place between days 4 and 10 would be that buy “signal”?

  2. I use the T2108 to avoid doing the wrong thing at an extreme. I will move back into the market when the GMI goes to 4 or above. I also pay a lot of attention to my short term trend count. It is too early for me to know whether this will turn into a multi-month decline. It all depends on what happens after the rebound rally is tested.

  3. This past week I got stopped out of stocks or ETFs or sold out things I had a profit in, only to see them all bounce back today quite a lot! Even our doing well in gold clearly bothered the powers that be as they raised the margin and made Gold go down today. I sure would like to see a stock transaction tax to cut down on the schizophrenic volatility induced by the big boys on Wall Street.

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