Dr. Wish

GMI at 3, $DIA and $SPY have closed below their critical 30 week averages; in cash and short and $GLD;

@ 9:17 am
GMI3/6
GMI-24/9
T210840%

I successfully avoided the 2000 and 2008 market debacles by getting out when the major indexes closed below their declining 30 week averages. Such a pattern could indicate the beginning of a Weinstein Stage IV decline.  The DIA and SPY have now closed below their declining 30 week averages.

Here is DIA in 2007-8 top.

And QQQ in 2000.

The QQQ is the strongest of the 3 index ETFs and is still above its rising 30 week average. If it closes back below its green line, it would be a sign of a failed GLB and major technical weakness.

I am too near retirement and therefore a chicken. So I pulled all of my money out of the market on Friday. It is nice to be on the sidelines. When my indicators look good again, I will re-enter the market. I am short in my trading account with a small position in the 3x inverse ETF, SDOW, and  GLD. Be careful. The worst of the decline may be yet to come.

 

 

$DIA entering Weinstein Stage IV decline? If so, re-test of March lows coming?

@ 10:32 pm
GMI4/6
GMI-26/9
T210848%

I don’t want to scare anyone but the DIA may be entering a Stage IV decline. This is the type of signal that will get me into 100% cash in all of my accounts and saved me from the major declines in 2008 and 2000. Failure of the DIA to hold its 30 week average (solid red line) will be a significant sign of weakness. See weekly chart below. Note declining 30 week average. Friday’s close will be very important to me.