Tech Stocks Decline, Will Channel Hold?


Thus far,   tech stocks, as measured by the ultra 3X ETF, TYH, are declining within the channel I have been watching for several weeks.   The question, which my stock buddy, Judy, raised when I first posted the channel was, will the bottom of the channel hold as it has in the past?   No one knows.   The key for me   is to wait for the reversal, and to then wade in slowly, with stops below the low of the bounce.   Meanwhile, the Worden T2108 Indicator is now in neutral territory, at 58%. Only 19% of the NASDAQ 100 stocks have a MACD that is above its signal line, the lowest percentage since last November’s decline. The low in this indicator last November was 9%. The key for me is to remain defensive, and to cut losses before they grow too large.


GMI down to 2; Getting defensive


The market deteriorated very quickly last week.   The 4 down days occurred on much higher volume than the single up day.   In fact, the up volume of some of the bear   3X ETF’s (EDZ, FAZ, ERY) was the highest I have ever seen, especially on Friday.   The 2X   Ultra short   QQQQ ETF (QID) also had huge up volume. This suggests that the pros are making huge bets on the short side.   The Worden T2108 is now at 21%, not yet at extreme oversold levels, but it is getting there.   The GMI fell

Read more