The GMI is at 6 and the GMI-R is at 10. There were 156 new highs on Tuesday in my universe of 4,000 stocks, the most since September 19, 2008. The QQQQ is back in a short term up-trend. Both the short and long term trends are now up.
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Signals inconsistent-waiting in cash
Sometimes my long term and short term indicators do not agree with each other. This is one of those times. My short term daily trend indicator for the QQQQ turned down last week while my long term indicators remain up. So, I went to cash in my short term trading account but stayed long in my more conservative pension mutual fund accounts. The GMI
Market continues to rally as state employees get furloughed
One must not argue with the market. It peaked long before the bad news came out and it has bottomed before a lot of good news has come out. As a Maryland state employee, I am learning that we will lose 8-10 days of pay over the next 12 months. I know MD is not the only state facing huge budget deficits, so I am incredulous how the market can act like things are betting better. So many employees are looking at slimmer paychecks. Given that a few months ago we feared that the economy was going to collapse, maybe the fact that it hasn’t has precipitated a relief rally. The patient remains in the ICU, but apparently will survive. As my GMI table below shows,