GMI falls to 5; Gold in Stage 4 downtrend; Is TSLA beginning one?

GMI5/6
GMI-24/8
T210849%

My market indicators are weakening, with the GMI back to 5 (of 6) and the GMI-2 at 4 (of 8).   I am much more defensive in my trading accounts. My longer term university pension remains 100% invested in mutual funds.

I wanted to show you why I have been bearish on gold for a long time.   This weekly chart of GLD shows that it has been in a Stage 4 down-trend since early 2013. I would not own GLD (or any stock) until it comes back above its 30 week average (red line).

WeeklyGLD11212013

With that in mind, take a look at the weekly chart of TSLA.   TSLA is now below its 30 week average.   It is too early to know if it will enter a Stage 4 decline, but I would not own TSLA until it comes back above its 30 week average (red line). I alerted readers several weeks ago when TSLA was at 173 and broke below its 10 week average (blue dotted line), a critical sign of weakening in a growth stock.

TSLAweekly11212013

 

 

2 thoughts on “GMI falls to 5; Gold in Stage 4 downtrend; Is TSLA beginning one?”

  1. Hi Prof. I really appreciate your site and all the time you have put into educating all us readers. My question for you is, how did you select the 30 week sma as an indicator? I am familiar with the 10 week but not that one. thank you.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: