It remains to be seen whether this bounce will last and turn into a new short term up-trend. With the 30 day average of the QQQ curving down, I expect more weakness. There were only 72 new 52 week highs in my universe of almost 6,000 stocks on Thursday.
Dr. Wish,
Have you ever discussed using your basic GMI timing model but, instead of going to cash on a sell signal, going to bonds (TLT,for example). Since bonds are negatively correlated to equities, such a strategy might provide some upside during prolonged downturns.
Alex
Bonds are not perfectly negatively correlated with stocks. If they were, your strategy would be easy.
Thanks for sharing!