I remain cautious. The QQQ is still in a short term down-trend, but the DIA is showing some strength. The tech stocks are simply weak right now. Some of the growth leaders I track are showing strength: BIDU, NFLX, PCLN, AZO. The longer term trend of the market remains up, and I am waiting for signs that the current short term down-trend is ending.
11th day of QQQQ short term down-trend; in cash and short; submarine stocks
The down-trend continues and the market remains in a correction, according to IBD. I ran my submarine scan to look for possible weak stocks to short. Among the stocks I found are: MICC, AKAM, PVH, SAN, HSP, VCI, CTRP, CREE, DLB. I short stocks in my IRA by buying deep in the money puts. Once the stock falls I often buy shares to lock in the gain and ultimately put them to the option seller at the strike price. Note that DLB now has a BWR pattern, with all of its shorter term averages (red) below its longer term averages (blue). Click on weekly chart to enlarge. BWR is a submarine pattern.
Still in short term down-trend; short and in cash
Both the GMI and GMI2 rose to 2, but the short term down-trend is still in place. IBD also says the market is still in a correction. The market has snapped back on unimpressive volume, suggesting to IBD that the institutions are not jumping on board. I remain mainly in cash with a couple of small short positions. Check out the daily chart of the QQQQ below (click on chart to enlarge). The short term up-trend that began last September is now over. The new short term down-trend is 10 days old. How long will it last? No one knows. I follow trends until they end.
