The GMI and GMI-R remain at zero. While the market is declining, there were only 81 new 52-week lows on Wednesday in my universe of 4,000 stocks, compared with 844 and 1,453 on January 18th and 22nd. In other words, most stocks are holding above their lows during the steep January decline. So let’s not be deceived by the decline in the averages. Things are not as weak as they were last month. The Worden T2108 indicator is now at 35%, also up from the January low of 18%. With only 8 stocks hitting new highs, it is time for me to remain in cash and to stay off of this roller-coaster. (Why does Cramer tell his audience to "stay in the game?") The former leaders are getting shot (BIDU, CME, AAPL, ICE, RIMM). Wednesday was the 24th day of the current QQQQ short term down-trend and if you exited the market when I did, you are sitting pretty.
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GMI: 0; GMI-R: 0; 23rd day of QQQQ down-trend; masochists and gamblers stay long
The GMI and GMI-R are both back to zero. Tuesday was the 23rd day in the QQQQ short term down-trend. As bad as it looked, there were only 50 new lows in my universe of 4,000 stocks, compared with 1,453 on January 22nd. So the damage on Tuesday was not nearly as great as that a few weeks ago. There were 13 new highs in my universe of 4,000 stocks on Tuesday. The Worden T2108 indicator is now back to 38%, well above bottoming territory. Only 25% of the Nasdaq 100 stocks closed above their 30 day averages.
The down-trend continues and we should not try to guess a bottom. We are only about 13 weeks from the top, and down-trends often last 9-12 months. The key is to wait for a convincing turn before going long again. Only masochists and gamblers hold stocks at times like these.
GMI: 0; GMI-R: 2; 38 new highs and 10 lows; 22nd day of QQQQ down-trend
The GMI remains at zero, and the GMI-R at 2. Monday was the 22nd day of the current QQQQ down-trend. There were 38 new highs and 10 new lows in my universe of 4,000 stocks on Monday.