Dr. Wish

Blog post: 10th day of $QQQ short term down-trend; trading accounts in cash; In a very rare situation, GMI could turn Red after 2 days of Green–monitoring the daily and weekly GMMA charts

@ 8:54 am
GMI2/6
GMI-24/9
T210851%

We are into the period of the post-earnings season lull when there is little to drive stocks higher. With futures down huge this morning, the GMI may close under 3 again and trigger a Red signal. It has been very hard to make $$$ on the long side during the past 10 days since my QQQ short term indicator turned down. I am concerned that the persons who have never experienced a long decline like 2000 and 2008 may be about to get a lesson about market risk. This daily GMMA chart (defined in blog glossary) shows that the QQQ is near to entering a BWR decline. Best to own stocks during a daily RWB up-trend. If we begin a weekly BWR down-trend, the bear will be upon us and I will transfer my university pension money into cash. That will signal the BEGINNING of a major decline. Daily GMMA chart:

Weekly GMMA chart:

Blog post: GMI rebounds to 4 and could turn Green on Monday; However, $QQQ closed below its 10 week average. Critical week coming; $CROX $YETI $PLBY have black dots signaling OSBs

@ 6:33 pm
GMI4/6
GMI-23/9
T210854%

A large number of stocks had an OSB (oversold bounce) on Friday, 56/602 IBD/MarketSmith type growth stocks and 166/6222 of all US stocks. So did DIA and SPY. It remains to be seen whether these bounces will hold. Here are a few examples. Note the black dots indicating an OSB. They all recently traded at ATHs (all-time highs).

The GMI rose to 4 and could turn Green if it closes above 3 on Monday. The key is to wait until it happens and to resist acting in advance of the signal,  which may not come. The QQQ completed its 8th day (D-8) of its short term down-trend.