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Markets rebounded on Thursday. All GMI components are positive.

My market indicators are weakening, with the GMI back to 5 (of 6) and the GMI-2 at 4 (of 8).   I am much more defensive in my trading accounts. My longer term university pension remains 100% invested in mutual funds.

I wanted to show you why I have been bearish on gold for a long time.   This weekly chart of GLD shows that it has been in a Stage 4 down-trend since early 2013. I would not own GLD (or any stock) until it comes back above its 30 week average (red line).

With that in mind, take a look at the weekly chart of TSLA.   TSLA is now below its 30 week average.   It is too early to know if it will enter a Stage 4 decline, but I would not own TSLA until it comes back above its 30 week average (red line). I alerted readers several weeks ago when TSLA was at 173 and broke below its 10 week average (blue dotted line), a critical sign of weakening in a growth stock.

While the GMI remains at 6 (of 6) my most sensitive short term indicators have weakened, with the GMI-2 now down to 4 (of 8). We are likely in the post earnings release period when stocks weaken until we get close to the next quarter’s earnings release,   in January. With the GMI at 6, the longer term up-trend remains intact.

Meanwhile ONVO and the other two 3D stocks I follow swooned on Tuesday.   ONVO fell almost 25% on its highest trading volume ever, an ominous sign of weakness. It also failed its green line break-out. Below are the daily charts for ONVO, DDD and SSYS. When a hot sector like 3D fails badly, it often foreshadows a decline in the greater market.   I have become defensive and have greatly reduced my holdings in my trading accounts.