No changes in my general market indicators. There were 5 new highs and 91 new lows in my universe of 4,000 stocks on Tuesday. EBS, which I wrote about weeks ago, continues to do well. ( I own a few shares of EBS and have written a call on them). Otherwise, I am mainly in cash and a little short.
Dr. Wish
GMI: 0; GMI-R: 1; T2108: 11%; 60th day of QQQQ short term down-trend
The GMI remains at zero (of 6), but the more sensitive GMI-R rose to 1 (of 6). I do not typically identify a tradeable up-trend until the GMI is at least 3, and this market is still a long way from a real up-trend signal. Monday was the 60th day of the current short term down-trend in the QQQQ. There were 3 new highs and 99 new lows in my universe of 4,000 stocks on Monday.
GMI: 0; GMI-R: 0; S&P500 double top or market bottom?
The GMI and GMI-R remain at zero. There were 21 new highs and 1835 new lows in my universe of 4,000 stocks on Friday. The number of new lows was down from 2185 on Thursday.
The Worden T2108 Indicator rebounded from 5% to 7%, and is still in what used to be indicative of an imminent bottom. Friday was the 59th trading day (D-59) since I identified the beginning of the current short term down-trend in the QQQQ. Since that day (September 2) the QQQQ has declined 41%. During that time, 99% of the Nasdaq 100 stocks (all but APOL–the proverbial needle in the haystack–sought by those addicted to the bullish side) have declined, and 44% have declined 50% or more. Even if we had missed the initial sell signal and waited until a failed bounce on September 19, still, 99% of the Nasdaq100 component stocks have declined since then, one half by more than 41%. So you see, one could have missed the first sell signal by about 2 weeks and still have saved a lot of money by going into cash or short. Who knows? Maybe it is still a good time to go to cash…