As we get to the end of the 2nd quarter, I expect that the mutual funds will dress up their portfolios with the best big name stocks. That way their quarterly reports will show them holding the stronger stocks. So we may see some strength this week. But all of my GMI indicators are negative. I remain on the sidelines, in cash.
Dr. Wish
23rd day of QQQ short term down-trend; on the sidelines
IBD still maintains “market in correction.” Many of my internal indicators show that we have come back from being severely oversold. For example, 53% of the Nasdaq 100 stocks now have their MACD above its signal line, up from a recent low of 5%. 93% have their slow stochastic above their long, up from 6%. Both of these indicators are sensitive to very short term moves.The Worden T2108 indicator looks like it has gotten down to levels reached at recent bottoms, see weekly chart below. I just have to wait to see if this bounce can turn the indicators in my GMI and GMI2 positive. Time will tell. Meanwhile, I enjoy life on the sidelines.
