Dr. Wish

GMI: 0; GMI-R: 0; 16th day of QQQQ down-trend; Worden T2108: 11%; VIX: 26%

@ 12:10 am

The GMI and GMI-R remain at zero.  There were  66 new highs and 452 new lows in my universe of 4,000 stocks on Wednesday.  The market was not as bad as it looked, with only about one half of the new lows than we had on Tuesday. Wednesday was the 16th day of the current QQQQ decline.  The Worden T2108 indicator closed Wednesday at 11%, well into bottom territory.  The VIX also moved up to 26%….

The bear got around to killing the previously strong metal and coal stocks.  I learned (again) the painful lesson to refrain from writing covered calls on any stocks during a market down-trend. While QID and my shorts have made money, I lost money on my covered calls, which I subsequently closed out. Only write calls on strong stocks in strong markets.

GMI: 0; GMI-R: 0; 15th day of QQQQ down-trend

@ 12:01 am

The GMI and the GMI-R remain at zero, the lowest reading possible.  There were  726 new lows in my universe of 4,000 stocks on Tuesday, the most since the market low  last March 17 (at 723).  There were only 40 new highs on Tuesday. On January 22 during a spike down in that long decline, there were a maximum of 1,453 new lows,  indicating that the March and June declines while similar to each other, have been much less damaging than the decline last January. It remains to be seen whether the current decline will produce the extreme number of new lows that occurred last January.  Tuesday was the 15th day of the current QQQQ down-trend. The Worden T2108 indicator remains at 15%, a level at which some declines have bottomed out.  If this indicator falls below 10% I will begin to suspect a bottom may be near.

GMI: 0; GMI-R: 0; 14th day of QQQQ down-trend; QID up 13%; CPST

@ 11:52 pm

The GMI and GMI-R remain at zero each.  There were 75 new highs and 526 new lows in my universe of 4,000 stocks on Monday.  Monday was the 14th day of the current QQQQ down-trend.  During that time the QQQQ has declined 6.9% and the QID has advanced by 13.4%.  The QID is a wonderful way for me to make money as the Nasdaq 100 index declines.  One can even buy call options on QID or write covered calls on it. In the midst of this decline it is amazing how well Judy’s pick, CPST, has held up.  CPST is up 21% during this 14 day QQQQ decline.