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The down trend in the SPY reasserted itself today and we are in the 8th day of decline (D-8) in the QQQQ. I might add that the Dow 30, as measured by the DIA, also remains in a consistent decline. The Nasdaq 100 fared better today than the other indexes, with 36% of its stocks advancing. This compares with 23% of the S&P 500 stocks and only 7% (2) of the Dow 30 stocks. There were 360 new 52 week highs in my universe of 4,000 stocks and only 13 new lows. Still, we had 109/170 stocks that hit a new high 10 days ago and closed higher today than they did 10 days ago. Buying new highs has continued to pay off…………………………………………
I think this remains a good time to be short or in cash. The stocks on which I own put options (KRI and LXK) fell today, giving me a profit. Some of the stocks I still own (BBY, MW, WFMI) held their own today. Still, the odds now favor a decline and I will not make any new stock purchases until the GMI strengthens.
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Please remember that the stock market is a risky place, especially now. I am not providing recommendations for you to follow. My goal is to share tools and methods that I have used over the past 40 years of trading, so that you may learn from them and adapt them to your trading style and needs. While I do my best, I do not guarantee the accuracy of any statistics computed or any resources linked to my blog. Please consult with your financial adviser and a mental health practitioner before you enter the stock market, and please do not take unaffordable risks in the current market environment. See the About section for more statements designed to protect you (and me) as you navigate this market. Past performance does not guarantee future results, but I would rather learn from a former winner than a loser.