While many techs bounced on Thursday, the QQQ remains in a short term down-trend. IBD still calls the “market in correction.” I remain largely in cash with my few long positions protected by put options.
GMI remains at 1; 3rd day of QQQ short term down-trend
Wednesday brought a bounce from oversold levels. Wednesday was the 3rd day of the QQQ short term down-trend. I am more confident of a change in trend once it reaches 5 days. I remain mostly in cash with all of my long positions protected by put options.
GMI falls to 1; in cash and/or hedged with put options
The GMI has fallen to 1 for the first time since last March. The IBD Mutual Fund Index is now below its 50 day average, a major negative sign for me. I cannot make money on the long side when these growth mutual funds do not do well. I am therefore mainly in cash in my trading accounts, with my few long positions protected with put options. The key to success in the market is to lose little money when the odds are against me. There is a time to be out of the market, ready to jump in if the trend reverses. Tuesday was the second day of the new QQQ short term down-trend. I remain fully invested in mutual funds in my university pension because the longer term trend remains up—for now.