While the QQQQ is in a short term and long term down-trend, the daily stochastic is in deeply oversold territory. A bounce may be imminent. This is therefore not the time to initiate new shorts. I am sitting on the sideline, mainly in cash with some short positions.
On the sidelines, mainly in cash–defensive
GMI and GMI-R are now both 1. Wednesday was the 9th day of the current QQQQ short term down-trend. 30 week average is starting to curve down–this typically happens at the beginning of a major down-trend. The Worden T2108, at 42%, is far from oversold territory where bottoms typically occur. We must be very careful. and on the defensive.
Check out my second Worden webinar; Short and in cash
I presented a webinar along with Julia Ormond Tuesday evening. If you missed it, you can access the archive at worden.com starting Wednesday. I talked about my Submarine Scan and sent people the TC2007 PCF for it. Meanwhile, the GMI and GMI-R are back to zero. I hold only short positions and my account rose on Tuesday. This is the time to be short or safely on the sideline as we enter the typically weak month of September.