GMI: 2; GMI-R: 6; 19th day of QQQQ short term up-trend: T2108: 89%

The QQQQ short term up-trend continued and completed its 19th day on Tuesday.  The GMI and GMI-R remain unchanged, at 2 and 6, respectively.  A note of caution, however, is that the Worden T2108 Indicator hit 89%, about as high as it gets during an up-trend.  This means that 89% of the NYSE stocks closed above their 40 day averages.  T2108 at this level does not signal an immediate decline, it can remain at 80-90% for several months. Seven stocks on my IBD100 lists the past year  hit a new high on Tuesday:  TWGP,VSEC,NPK,BKR,AMSF,AVAV and MYGN.

I’m up 1200%, as my fellow boomers and college students get screwed again; QQQQ in 17th day of short term up-trend; GMI: 2; GMI-R: 6; T2108: 83%; 10 IBD100 stocks at new highs

I escaped 2008 with a small loss in my account (-5%).   Not bad, compared to how the indexes did (down 35-40%), but not great, given that I did trade some short positions (with puts) during the year.   On December 24, IBD published a table listing the performance of the best growth mutual funds since April, 1994.   The top fund was up +382% since 1994.   My IRA account remains up a little more than 1200% (13x) since late 1994, so I do not feel that bad about my performance this year.   The key to my success is that I made money during the strong market rises and kept it, by being mainly out of the market during the major declines.   I might add that while I traded in my IRA during the huge declines in 2000-2002 and 2008, I avoided major losses in my university pension plan by transferring from mutual funds into a money market fund during these declines.   So, I have learned the painful lesson over my 40+ years of trading that the key to success is conservation of capital during the inevitable market down-trends.   These declines can be detected   long before they reach the panic phase when they become evident to everyone. I have developed rules for identifying the market’s trend early, that I post each market day in this blog, in the form of the GMI and GMI-R…..

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