Dr. Wish

GMI-2 falls to zero, with all indicators negative. I am mainly in cash. This is an unusually good description of how bad this market decline is.

It looks like gold is forming a Stage 1 base.   The gold ETF, GLD, formed a double bottom around 114.50 and appears to be forming a base.   Gone are the pundits talking about gold reaching $2,000 or $3,000 per ounce. As they now proclaim that gold has more to fall, it probably will start to rise.   I am nibbling at GLD.   Here is its weekly chart. As always, watch the chart, not what the pundits say.

Mainly in cash in my trading accounts.   I have a small position in SQQQ.

I am, however,   keeping an eye on stocks that can survive this decline and hit a new 52 week high. Only 4 stocks came up   in my good fundamentals and new high scan.   All are recent green line break-outs. These are EQT, COG, DXCM and RENT.   I like EQT and COG (I own a little) the most. Any stock that can reach a new all-time high in this market is worth watching for future strength.

I wrote a few days ago that the market always comes down faster than it goes up. Hence the current sharp decline after many months of an advance. It is nice to be short or in cash in my trading accounts and watching from the sidelines. Unfortunately, I am still invested in mutual funds in my university pension. I will only exit them when it looks like a longer term Stage 4 decline. This weekly chart of the QQQ shows it to remain in a Stage 2 up-trend, well above its rising 30 week average (solid red line).

I expect a bottom when the Worden T2108 falls below 20%.   It is currently at 37%.