General Market Index (GMI) table

As you know, I use the Worden TC2000 charting software daily to follow the market and to teach my university course on technical analysis.   The Worden group has graciously invited me to speak at their seminar on Friday and Saturday.   You can check out the agenda on their site. I hope to meet many of you there. If you can’t make it, I will post here when   the   session tapes are made available.

Meanwhile, the GMI is back to 6 (of 6) even though the futures indicate a rocky start on Monday.   I am a little worried that last week, IBD labeled the market in a correction.   They have a very good track record on calling the market trend.   I remain long, however, until the GMI shows major weakness. But I may cut back a little in the holdings in my trading account. The Worden T2108 Indicator remains at 41%, in neutral territory.   By my count, Thursday was the 70th day of the current QQQ short term up-trend.   This is quite long for an up-trend to continue.   I am also concerned that only 26% of the Nasdaq 100 stocks closed with their daily MACD above its signal line. This indicates short term weakness.

I am not going to highlight promising technically strong stocks today, and will wait instead until the markets show more strength.

Market remains in up-trend but IBD says “Uptrend under pressure.”   Until first quarter earnings are released later in April, there could be some weakness.   There is nothing to push the market up until strong earrings are reported.   The GMI and GMI-2 remain at 6 each.   But the short term indicators like MACD and stochastics are showing some weakness.   For example, only 44% of the Nasdaq 100 stocks closed with their MACD above its signal line.   And only 15% of the Nasdaq 100 stocks had their fast stochastics above the their slow stochastics.   These are signs of short term weakness. The Worden T2108 Indicator is at 54%, in neutral territory, but its trend is clearly down, reflecting weakness in the NYSE stocks. GLD continues to show weakness. And 66 days is relatively long for a short term up-trend. Nevertheless, with the GMI at 6, I remain fully invested in mutual funds in my university pension. In my trading account I have some longs but I prefer to write covered calls or sell cash secured puts on the weekly stock index options. The premium received from 4x a   weekly option is more than   the total premium for a monthly option. I like selling weekly options.