Dr. Wish

There were 9 new highs and 169 new lows in my universe of 4,000 stocks on Wednesday.  The Worden T2108 stayed at 14%.  I remain mainly in cash.

There were 10 new highs and 234 new lows in my universe of 4,000 stocks on Tuesday.  The Worden T2108 indicator rose to 14%.  The major indexes are in down-trends.  It is very prophetic that one of the 10 stocks to hit a new high on Tuesday was EZPW, an operator of pawn shops. I remain mainly in cash. 

The GMI and GMI-R remain at zero.  Fortunately, my account rose on Monday and I hope my readers were in cash or short, too.  There were an amazing 1,066 new lows and 12 new highs in my universe of 4,000 stocks on Monday.  This was the highest number of new lows since 1,453 on January 22nd. The Worden T2108 indicator is at 9%, an extreme low level for that indicator, typical of past market bottoms.  Only the bottom in the 1987 crash had a much lower reading, less than 1%.  This is not the time to make new short sales.  It is very likely that the market is at a bottom, at least for now. Watch for a rise in the Dow on unusually high volume.  Meanwhile, the safest course is to remain in cash on the sidelines until the GMI rises to at least 3.