Dr. Wish

GMI: 3; GMI-R: 4; QQQQ on the edge of the cliff; buy QID?

@ 12:01 am

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. GMI0829

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

@ 5:51 am

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.

GMI: 3; GMI-R: 5; 13th day of QQQQ up-trend; bottom in?

@ 12:01 am

The GMI remains at 3 (of 6) and the GMI-R at 5 (of 10).  There were 23 new highs and 31 new lows in my universe of 4,000 stocks on  Friday. Gmi0825

The Worden T2108 indicator is now at 53%, in neutral territory.  It appears to me that the QQQQ, SPY and DIA have all successfully tested short term support.  The QQQQ has closed above its critical 10 week average for three weeks.  A lot of stocks appear to me to be finding support.  So, I am inclined to nibble at QLD again and to look for stocks breaking to new highs.  I remain heavily in cash and will slowly wade into this market if stocks strengthen.