Dr. Wish

5th day of QQQ short term down-trend; GMI flashes Sell signal

@ 9:47 pm
GMI2/6
GMI-24/9
T210848%

Since 2006, 76% of the QQQ short term down-trends that lasted 5 days, eventually lasted for 11 days or more. I am therefore content to remain mainly in cash with a small position in SQQQ.   SQQQ is an inverse ETF which is designed to rise 3X as much as QQQ falls. The Dow 30 stocks are much weaker than the Nasdaq 100 or S&P500 stocks. One half of the Dow stocks are below their critical 30 week averages, compared with about one third of the stocks in these other indexes.

The GMI flashed a Sell signal as of the close on 1/27 and registers 2 (of 6).

GMI01312014

GMI correction–Sell signal was one day earlier, on 1/27; IBD: market in correction

@ 11:14 pm
GMI1/6
GMI-22/9
T210844%

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.