19th day of $QQQ short term down-trend; $QQQ and $SPY look weak

GMI0/6
GMI-24/8
T210829%

IBD sees renewed up-trend. MY GMI and QQQ short term trend indicators are still pointing to a down-trend. For me, this rise remains a “dead cat bounce” until more of my indicators turn positive. A lot of technical resistance is just above current levels. By the way, I drew the lower horizontal line in this chart months before QQQ found support there in January. We likely will see at least a re-test of January’s lows.

01312016QQQ

The SPY continues to look quite weak, in a BWR down-trend.

SPY01312016The GMI remains at 0 (of 6) and on a Sell signal since December 10th.

GMI01292016

Table of long and inverse index ETFs; My AAII workshop in February; Trend still down–dead cat bounce?

GMI0/6
GMI-23/8
T210814%

A number of you have asked me about  inverse index ETFs so you could short the market. Below is a table that my co-instructor, David, built for the undergraduates enrolled in our stock market class. The table includes leveraged ETFs, which attempt to move 2-3 times the underlying index. Leveraged ETFs can be dangerous. It is important to read up on how they work and to monitor holdings quite carefully. The table also contains some ETFs that trade long or short with the price of gold. There is also a whole new class of light leveraged ETFs, not in the table,  which you can learn about here.

DavidETFmatrixI will  be presenting  a 3 hour workshop for the AAII  DC Metro Chapter in Virginia in February. It is open to the public. While there is a small charge, the money raised goes to cover the expenses for the venue and to support AAII and my substance abuse research center at the university, both good causes. My co-instructor, David, and I take no compensation for the presentation. A notice about the workshop appears here. For those of you who want to learn more about my approach and to ask questions, here is our chance to meet. Just click here to learn more or go to:  http://www.aaiidcmetro.com/

The GMI remains at 0 (of 6) but the very sensitive GMI-2 has climbed to 3 (of 6). If the market indexes remain in a down-trend and they become short term over bought and begin to weaken, I might buy a leveraged inverse index ETF.  It is important to always trade with the market’s trend. The T2108 is now at 14, and no, I did not have the courage (foolishness?) to buy a bullish index ETF when T2108 was below 10!

GMI01222016

If the QQQ (103.77) could close back above all of these 12 weekly exponential moving averages, around 108.40, I might suspect a new up-trend. For now, I am looking for the proverbial “dead cat bounce.”

GMMAQQQ01222016The SPY looks even weaker than QQQ and remains in a BWR down-trend:

GMMASPY01222016