The GMI remains at 2 and the short term GMI-S is at 0. I am safely in cash. There is no reason to trade in this market. I will just sit back and wait for the GMI to signal an up-turn. The Worden T2108 indicator is back to 20. Thursday was the ninth day in the current QQQQ down-trend and the index is now below its 10 week average. I have the best odds of making money on the long side when the QQQQ is consistently above its 10 week average.
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GMI: 2; Cash is king
The GMI moved up one to 2, as there were 107 new 52 week highs in my universe of 4,000 stocks. While the short term trend of the QQQQ (and the SPY and DIA) remains down, the quality of the current rally in the next few days will tell me whether the trend is reversing up. Cash is probably the right place for me to be right now.
GMI:1; 10x more new lows than highs
The GMI is still one and the GMI-S is zero. There were 557 new lows and 52 new highs on Monday in my universe of 4,000 stocks. While 78-97% of the stocks in the major indexes advanced, only 60% of my universe of stocks rose, along with just 56% of the stocks in the twelve IBD100 stock lists I have been following for the past year. So the advance Monday occurred mainly in the stocks typified by the major index ETFs (SPY, DIA and QQQQ). The Worden T2108 indicator is 18%, up from Friday’s extreme low of 14%. Monday was the sixth day in the current QQQQ down-trend. I continue to be short or in cash until the GMI should signal an up-trend.
See my disclaimers below.