We completed the 6th day of the new QQQ down-trend on Wednesday. The Worden T2108 indicator is at 10%, up a little. I wish I had the courage to buy a little of QLD. The Worden T2108 indicator rarely goes into single digits and is a sign of an extremely oversold market. I saw this interesting article about technical analysis this morning. Technical analysis always works better than fundamental analysis when markets decline a lot. Technical analysis tracks human psychology and behavior. Fundamental analysis is based on company “facts” and subjective interpretations about their business.
Dr. Wish
5th day of QQQ short term down-trend; in cash
Bottoms take a while to put in. I do not trust this one yet. We are only five days into the new short term down-trend. But with the T2108 at 8% we are in extremely oversold territory. I am in cash, safely and calmly watching from the sidelines.
4th day of QQQ short term down-trend; T2108 = 7%
The only positive thing I see is that the Worden T2108 is at 7%. In the 2008 decline it reached 1.2%. Bottoms occur when the T2108 is in single digits.