While the media pundits blame the market’s fall on the inflation news today, note that the decline started a week ago on May 5th when the $QQQ short term trend turned down. Wednesday was the 6th day of the down-trend. It is not the news that is important but the market’s reaction. This market wants to decline. If the GMI should register 0 it means that the short term and longer term components are negative. Also, it is very difficult to make money on the long side when the GMI is Red. It turned Red today. Never fight the general market’s trend. Look at these modified daily GMMA charts. RWB (red above white above blue) up-trends are over and BWR down-trends are forming in these stocks. Much easier to make money with stocks in daily RWB up-trends. These patterns are explained in my blog glossary.This could be just the beginning of the decline. SQQQ went up 7.8% on Wednesday. If we get a bounce in the QQQ, I may add to my position in SQQQ.
