General Market Index (GMI) table

GMI at 3, $DIA and $SPY have closed below their critical 30 week averages; in cash and short and $GLD;

@ 9:17 am
GMI3/6
GMI-24/9
T210840%

I successfully avoided the 2000 and 2008 market debacles by getting out when the major indexes closed below their declining 30 week averages. Such a pattern could indicate the beginning of a Weinstein Stage IV decline.  The DIA and SPY have now closed below their declining 30 week averages.

Here is DIA in 2007-8 top.

And QQQ in 2000.

The QQQ is the strongest of the 3 index ETFs and is still above its rising 30 week average. If it closes back below its green line, it would be a sign of a failed GLB and major technical weakness.

I am too near retirement and therefore a chicken. So I pulled all of my money out of the market on Friday. It is nice to be on the sidelines. When my indicators look good again, I will re-enter the market. I am short in my trading account with a small position in the 3x inverse ETF, SDOW, and  GLD. Be careful. The worst of the decline may be yet to come.

 

 

Blog post: $QQQ had an above average volume down week and a failed GLB, but daily RWB up-trend still in place–very defensive, cash +$SQQQ

@ 8:27 am
GMI4/6
GMI-24/9
T210874%

Note that the QQQ closed the week right on its 4 week average (pink dotted line) and on the precipice. There is no reason to be brave here with the futures predicting a swoon at the open. Failure to hold the GLB was a serious sign of technical weakness and could be a double top. Went to cash in my trading account and hold some SQQQ.

But we are still in a daily RWB up-trend.