The GMI is now 1 (of 6) and the GMI-R is 2 (of 10). I am now a little short and mainly in cash. Tuesday was the first day of the new QQQQ down-trend. There were 76 new highs and 58 new lows in my universe of 4,000 stocks on Tuesday.
Dr. Wish
GMI: 3; GMI-R: 4; QQQQ on the edge of the cliff; buy QID?
The QQQQ is one more down day away from a change in the trend to down. Another down day will also likely turn the GMI to one.
But it is important to wait for the signal and not to jump the gun. I am mainly in cash and will buy some QID if the market falls on Tuesday. QID is an ETF that is designed to rise twice as much as the QQQQ declines–it is an ultra inverse ETF. This has been the most difficult market for me to trade in a long time. Another strategy would be to wait in cash until this market shows real signs of an up-trend.
GMI: 3; GMI-R: 4; on critical support–very cautious
My indicators have weakened and the indexes are sitting directly on support. We should know in the next few days whether this bounce that began in mid-July will hold. I am mainly in cash and will wait for the outcome. Many stocks have broken down recently and in the last six days there have been only 6 to 23 daily new highs in my universe of 4,000 stocks. This is not a market to profit from buying stocks at new highs.