For the first time since January, 2009, GLD has closed below its 30 week average. This could be the beginning of a major Stage 4 down-trend. Click on weekly chart to enlarge.
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GMI back to 0 (of 6); hedged and in cash
With the GMI at 0, I am totally hedged and in cash. Another flat or down day will give me a second day with GMI less than 2, a major sell signal. I did not wait for this confirmatory signal to lighten up, however, because with the GMI at 0, I am ready to get defensive. I may start to transfer money in my university pension from mutual funds to money market funds. I do not like the current market pattern.
GMI declines to 3; new QQQ short term down-trend; Stage 4: HLF
Markets looking ugly again. IBD still sees correction. With new QQQ short term down-trend I am getting defensive again. Not looking for longs. I ran my scan looking for possible shorts, stocks that have climbed a lot in the past year and are beginning a possible Stage 4 decline. TC2000 came up with four stocks: CF,BIDU,FOSL,HLF. This weekly chart of HLF shows a stock that is breaking below its 30 week average (red line) with a pattern of high volume down weeks (red spikes). Click on chart to enlarge.
