Dr. Wish

We had more stocks at new lows than new highs in my universe of 4,000 stocks on Thursday.   With the GMI at 1, I am very cautious and mainly in cash.   This is no market in which to be a brave buyer of stocks.   The indexes (SPY, DIA and QQQ) remain in a longer term up-trend, however.   I therefore have remained in   mutual funds   in my university pension. It is still encouraging to me that AAPL has been holding up in this weak market environment. A number of tech stocks I watch have also held up well during the decline the past 2 days, including BIDU, SINA, ILMN, GOOG and NFLX. Rotation back into tech stocks?

Well, the short term down-trend continues, reaching its 7th day on Wednesday.   IBD reversed again on the market trend, even though Wednesday’s decline occurred on lower volume and was therefore not a true distribution day. AAPL actually held up well before reversing down with the market. I remain mostly in cash with a few long positions protected by put options. The longer term trend remains up.

GMI is back to 4 (of 6) and the GMI2 is at 6 (of 6).   Wednesday’s action could turn my short term trend count positive. Meanwhile, AAPL showed some strength (+3%) on Tuesday, a good sign. Also, 7 of my 9 leaders rose.