The GMI rose to 1 (of 6) and the more sensitive GMI-R to 4 (of 10). There were 5 new highs and 21 new lows in my universe of 4,000 stocks on Wednesday. The QQQQ will change to a short term up-trend, if it holds on Thursday. I sold my QID and bought a little QLD. I will accumulate QLD (the ultra long QQQQ ETF) if the up-trend gets going. The key is to start with a small pilot buy and to increase my position only if the trend continues. I also set close stops in case the trend weakens. In this way I have the greatest position (and risk) only after the movement is consistent with my initial purchases. I learned this strategy from the great Jesse Livermore (see Reminiscences book by Lefevre below), who made small pilot buys and then pyramided up only if the market confirmed his judgment. I never add to a losing position. I hope to get in on a trend that will last for weeks or months, not minutes or days.
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GMI: 0; GMI-R: 1; T2108: 48%
The GMI-R rose to one on Wednesday. The QQQQ completed the 9th day of its short term down-trend. However, the QQQQ is just below its critical moving average. A rise from here could turn the short term trend positive. The market seems able to hold up under a flood of bad earnings. So, the selling may be done for now. This appears to be a time of considerable back and forth in the market. I remain mainly in cash.
And the beat (bear) goes on; GMI, GMI-R: 0; T2108: 40%
