The GMI and GMI-R each rose one, to 3 and 4, respectively. There were 71 new highs and 153 new lows in my universe of 4,000 stocks on Tuesday. The markets are right on the edge of the cliff. They will either launch a nice bounce from here or fall through support. I am holding hedged positions and waiting for a clear signal from the market. The dollar seems to be holding and gold and silver look like they have broken their short term up-trends. It is time to just wait for options expiration on Friday and for the market to reveal its near term direction.
Dr. Wish
GMI: 2; GMI-R: 3; going to cash?
The GMI is now at 2 (of 6) and the GMI-R is 3 (of 10). There were 48 new highs and 153 new lows in my universe of 4,000 stocks on Monday. It is almost time to go to cash again. The QQQQ is sitting right on support and if it fails I will go to cash.
GMI: 3; GMI-R: 5; Ready to go to cash; more than 100 new lows
The GMI is now 3 (of 6) and the GMI-R is 5 (of 10). If Monday brings another down day, my indicators will turn bearish. For now, I wait for the change–I have made many mistakes in the past by trying to anticipate a turn. I find it far better to follow my rules and to sell after they signal a turn. There were 20 new highs and 106 new lows in my universe of 4,000 stocks on Friday. Friday was the first day with more than 100 new lows, since March 20. Many of the new lows (16) involved banks–not a good sign for the health of the economy.