Dr. Wish

I am much more comfortable with   a change in trend when it reaches 5 days.   However, given the weakness we have experienced the past few days, I went to cash in my trading accounts.   Several of my green line break-outs have failed, not a good sign.   I am content to wait for the market to clearly show me which way to trade. The GMI is now at 3.   It would have to be less than 3 for two days to provide a sell signal. So my long term pension accounts remain fully invested. IBD still sees the market in an up-trend.

The MarketWatch contest people published my article on green line chats without the chart!   Below is the AAPL chart I was referring to in my submission.   Please vote for my column by clicking here and selecting “like.”

I have entered the MarketWatch contest to find the next great market writer.   The winner will publish a column on their site. If you would like to see my market strategies get more exposure on their site, please select this link and vote for my entry about green line charts.   Thank you in advance to all of my readers.

The GMI2 is 4, reflecting short term weakness.   Since this up-trend began, the QQQ has advanced almost 9% in only two months.   The market could not maintain that type of momentum indefinitely. A decline in the QQQ on Wednesday would trigger a short term down-trend in the QQQ.   However, with the GMI so strong, I will not touch my university pension accounts. I am cutting way back, however, on my trading accounts for now. This weekly chart shows   that the T2108, at 70%, is now out of extreme territory. Click on chart to enlarge.