4th day of $QQQ short term down-trend; mainly in cash; but $SQ not so square!

GMI1/6
GMI-20/8
T210821%

The leaders are breaking down. The DIA and SPY have now closed below their 30 week averages.  Only 30 stocks hit a new high while 201 hit new 52 week lows on Wednesday. This is not a market to go long growth stocks near new highs. Time for me to be in cash or short in SQQQ.

However, SQ was one exception to the carnage. It released some good fundamentals and is worthy of monitoring. Note the large black up volume spikes on this daily chart.

screen-shot-2016-11-02-at-9-07-00-pm

Federal Reserve raising short term interest rates? Stocks ready to rally?

GMI2/6
GMI-R5/10
T210831%

While the short term down-trend is still in place, a lot of stocks I watch are gaining strength. And surprisingly, short term rates are starting to rise, perhaps in anticipation of a recovery in the economy. First, note that the GMI-R, which is more sensitive to   short term changes, has risen from 1 to 5 (of 10), while the GMI is now back to 2. As the table below shows,

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