No major changes in my general market indicators. However, the Worden T2108 indicator climbed to 20%, the highest since September 26. There were 9 new highs and 34 new lows in my universe of 4,000 stocks on Tuesday.
Dr. Wish
GMI: 0; GMI-R: 2; T2108: 5%; 45th day of QQQQ short term down-trend; 9 stocks near all-time highs
The GMI remains at zero (of 6), and the GMI-R at 2 (of 10). There were 12 new highs and 27 new lows in my universe of 4,000 stocks on Monday. 91% of the NASDAQ 100 and S&P500 stocks have a MACD above their signal line. It remains to be seen whether this short term bounce can reverse the longer term trends. After a major market decline, the new high list is the place to identify new market leaders. I especially like stocks at all-time highs. The 9 stocks hitting a new high on Monday and also near their all-time high are: LG, SPTN, AFAM, PETS, AVAV, STRA, ZEP, EBS, ALGT. Any stock that can come through the recent market debacle and trade near its all-time may be a leader in any new bull market. Stay tuned…
GMI: 0; GMI-R: 2; On sidelines waiting for signs of an up-trend
The GMI remains at 0 (of 6) and the more sensitive GMI-R remains at 2 (of 10). Friday was the 44th day (D-44) of the current QQQQ
The QQQQ is an ETF that mimics the NASDAQ 100 index, primarily nonfinancial tech stocks. The QQQQ and the SPY (S&P 500 ETF) have closed below their 10 week averages for 9 weeks each. It is when these indexes consistently close ABOVE their 10 week averages that I have made money in long positions in the past. But we are experiencing an up-trend within this longer term down-trend. 88% of the NASDAQ 100 stocks and 84% of the S&P500 stocks now have a MACD above their signal line.
With this short term bounce, my small short positions are not doing well. I am not ready to go long, however, with the GMI at zero. The major market index trends are still down. This is a time to remain mainly in cash and to wait to see if this bounce turns into a reversal of the longer term trends. The market averages remain a long way below the key moving averages that I follow. Guessing bottoms is for gamblers. For me, a trend follower, I must wait for the trend to turn up, to go long. If we got out of the market at much higher levels, we do not have to catch the bottom. As long as we get back in at or below where we exited, we have done well and avoided the carnage. The pundits try to scare us into the market by saying we will miss the quick percentage gains that occur right off of the bottom. We don’t have to worry about finding the bottom, because we exited the market weeks ago. The GMI has been 0 or 1 since September 2 (DOW: 11,516)!