Blog Post: Day 28 of $QQQ short term down-trend; GMI=0 and Red; I exited in November and do not have to catch the bottom, I can wait patiently for the signs of a new up-trend

@ 10:01 pm
GMI0/6
GMI-20/9
T210816%

With the GMI=0 I am content to wait for the end of the decline. I got out of the market in November and I do not have to try to guess the bottom. As long as I get back in at a price lower than where I sold I have done well and avoided all of the stress of a large drawdown. Too many people think they have to catch the bottom–ridiculous! It is so much easier to make money going long when the GMI is on a Green signal.  That occurs when there are two consecutive days with the GMI>3. I will also want to have the indexes in a weekly RWB up-trend. See below that QQQ is in a weekly BWR down-trend with all of the shorter averages (red lines) below the declining longer averages (blue lines). It looks like this may even be the beginning of a major down-trend. However, I do not become attached to a scenario.  I just wait for Mr. Market to tell me his direction.

 

Blog Post: Day 26 of $QQQ short term down-trend; $QQQ is now in a weekly BWR down-trend, first since 2008; See weekly charts showing how decline ends.

@ 9:48 pm
GMI0/6
GMI-22/9
T210816%

QQQ is now in a weekly BWR down-trend. All shorter term averages (red lines) are declining below the longer term averages (blue lines) with a white space separating them. Note the prior BWR up-trend pattern that lasted from May 2020 until January 2022.

The last time there was such a weekly BWR down-trend was in 2008. See how it ended. The white space disappears and the red and blue lines overlap. You don’t have to get in at the bottom. One strategy is to wait for the BWR pattern to end and really go in when the next RWB up-trend pattern begins. Another is to wait for the weekly closes (dotted line) to rise above all of the red lines and lead them higher. In a down-trend the weekly closes are leading all of the red lines down.