3D stocks cracked on Monday and T2108 declined to 81%. A weakening in the leaders could lead to general market weakness. The GMI is a trend following indicator and peaks after a top is in place.
Dr. Wish
GMI remains at 6; short and longer term trends remain up; ONVO roller-coaster
ONVO, a highly speculative one of “Judy’s Picks, ” has been on a roller coaster the past two weeks. This article provides more information about why this company is so interesting. I am holding some ONVO long term just in case the firm’s bio-printing business becomes profitable. The two other major 3D printing companies, DDD and SSYS, have been or quite a run….
The GMI has been at 6 (of 6) for 17 straight days. During this time the SPY has advanced +2.87%, the DIA +3.73% and the QQQ +0.22%. Clearly, tech stocks as measured by the Nasdaq 100 index, have underperformed during this rally. This is largely caused by the overweighting of AAPL in this index. AAPL has declined -17.3% during this same time period. I am a little cautious with the T2108 at 84%. While T2108 does not stay so high for a long time, the market can continue to climb for some time after the T2108 peaks. So I am not too concerned yet. However, after earnings come out there will likely be some retracement. The fact that over 53% of investment advisers are bullish and only 22% are bearish is another concern that this rally may be getting old. The Investors Intelligence poll is a trusted contrary indicator. When most advisors turn bullish it is nearer to the end of a rise.
16th day of QQQ short term up-trend; AAPL weighs on QQQ
With the large AAPL post-earnings decline (-12.4%), the QQQ has weakened (see daily chart below) and the more sensitive GMI-2 is now at 3. The QQQ has been flat since the New Year pop. With the T2108 at 84, I am a little more cautious than I would be with the GMI still at 6 (of 6). Some of the air came out of ONVO on Thursday and I bought back some of my shares at a lower price than I sold them earlier in the week. AAPL remains in a Weinstein Stage 4 down-trend and should have been sold long ago, as I had written months ago.
