Dr. Wish

I have been unable to retrieve the IBD mutual fund chart from their site and had to manually create the 50 day moving average tonight.   In doing so, I found that the index closed below its 50 day average starting on January 24.   This reduced the GMI to 2 on that day and produced   a Sell signal a day earlier, on January 27. Also, IBD has now called the market in a correction. Wednesday was the 3rd day of the new QQQ short term down-trend.

The GMI has just issued a Sell signal.   I am mainly in cash in my trading accounts with a small position in SQQQ. I will buy more SQQQ if this down-trend can last 5 days (through Friday). However, as this daily chart of the Dow 30 shows, it has just bounced after five straight days down and could retrace back to around 16,300 before resuming the down-trend.

Markets look very weak.   I am mainly in cash in my trading accounts.   I guess we will see AAPL break out of its channel–to the down side, on Tuesday. With the leaders wounded, the rest of the market is in for trouble.   Remember, however, 41% of the 51 down-trends since 2006 lasted five days or less.   I own a little SQQQ (3X inverse QQQ ETF) and will add more   if this down-tend continues. Another day with the GMI less than 3 will lead to a GMI Sell signal.