14th day of $QQQ short term down-trend; the current mini-decline

GMI0/6
GMI-20/8
T210817%

Isn’t it nice to be in cash on the sidelines during this decline?   The GMI issued its Sell signal on 9/26.   All of the pundits are rushing to explain the decline by things happening now.   However, the GMI picked up on a decline long before these events.   One must follow the market, not the news. The GMI will likely flash a Buy signal long before the news turns positive.   Remember how most pundits were skeptical of the market’s rise that began in 2009!

The market will retest Wednesday’s lows and I suspect even if they hold, the market will eventually go lower.   This still mini-decline could turn out to be the prologue to a major bear market. It takes a while for the 30 week average to curve down. Time will tell. Meanwhile, take a look at the weekly chart of the SPY. Note how small the current decline appears compared with the decline in 2011.

SPYweekly10152014

 

2 thoughts on “14th day of $QQQ short term down-trend; the current mini-decline”

  1. Are you still keeping your pension funds invested in the market? If so, what would cause you to move them out of equities. Thanks and keep up the great work.

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