I am much more comfortable with a change in trend when it reaches 5 days. However, given the weakness we have experienced the past few days, I went to cash in my trading accounts. Several of my green line break-outs have failed, not a good sign. I am content to wait for the market to clearly show me which way to trade. The GMI is now at 3. It would have to be less than 3 for two days to provide a sell signal. So my long term pension accounts remain fully invested. IBD still sees the market in an up-trend.
The MarketWatch contest people published my article on green line chats without the chart! Below is the AAPL chart I was referring to in my submission. Please vote for my column by clicking here and selecting “like.”
Good luck on the MarketWatch contest!
Yesterday you said a decline in the QQQ would trigger a short-term downtrend in the QQQ. It did decline and you indicated today that a new short-term downtrend had begun in the QQQ. What was the specific threshold that the QQQ had to cross for this to happen?