The GMI and GMI-2 each registered 3 (out of 6) on Monday. The QQQ is holding up much more than the SPY and DIA, both of which have closed below their 30 day averages. The GMI is weighted more toward the tech stocks measured by the QQQ and the GMI is not in any imminent danger of flashing a sell signal of two consecutive days of 2 or less. The Worden T2108 indicator fell to 32%, still in neutral territory. It will be interesting to see if we get a bounce in the indexes as earnings season begins.
See you at the Worden DC Seminar? IBD sees market in correction.
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.
GMI declines to 5 (of 6); Gold tumbles; PAG–RWB rocket stock
Wednesday was the 69th day of the current QQQ short term up-trend. I have written that I expected weakness for a few days, until first quarter earnings are released. The new earnings will give people reason to push stocks higher. The Worden T2108 Indicator fell to 44%, the lowest reading since it hit 30% last December, before the current up-trend began. There were only 52 new highs and 103 new lows. The last time we had as many new lows in one day was also in late December, 2011. The gold ETF, GLD, declined 2.68%, giving more evidence that it has entered a Stage 4 down-trend.
With the GMI at 5, I remain confident of the up-trend. I expect a resumption of the rise to take place when we receive first quarter earnings in about 10 days. When looking for stocks to buy it is sometimes useful to focus on those few stocks that are resisting the market weakness. Seven stocks came up in my scan that looks for stocks hitting a new 52 week high and having good earnings: ECOL,LO,PCLN,JBHT,PAG,CELG,IT. I will keep an eye on them. PAG is an RWB rocket stock that may be worth researching.
