GMI: 5; GMI-S: 44; 2nd day of QQQQ down-trend; buying QID

The markets continued to weaken on Thursday, but the GMI remains at 5.  The GMI-S, however, fell 19, to 44.  None of my four short term indicators for the QQQQ remain positive.  Gmi1221_1 Only 28% of the Nasdaq 100 stocks advanced on Thursday, along with 32% of the S&P 500 stocks and 20% of the Dow 30 stocks.  Only 28% of the IBD 100 list from 12/18 rose and only 28 closed above their close when the list was published.  Growth stocks are clearly hurting.  There were 163 new 52 week highs in my universe of 4,000 stocks.  Only 42% of the Nasdaq 100 stocks have now closed above their 30 day averages, the lowest since last August 9, during the market decline.  Many of my indicators are the weakest they have been since the decline last summer. In view of the developing down-trend in the QQQQ, I am slowly accumulating the ultra inverse QQQQ ETF, QID, which goes up as the QQQQ falls.  This is the first time my IRA can make a good profit from a market decline without the need to purchase put options on individual stocks or indexes.  The QID is leveraged so that it will rise twice as fast as the QQQQ declines.


2 thoughts on “GMI: 5; GMI-S: 44; 2nd day of QQQQ down-trend; buying QID”

  1. Aren’t the QID and wonderful new fund for shorting market.

    from 7-13 06 to date

    NASDAQ long (QLD) volume: up 51%

    NASDAQ short (QID) volume: up 217%

    S&P 500 long (SSO) volume: up 15%

    S&P 500 short (SDS) volume: up 69%

    Dow 30 long (DDM) volume: down 29%

    Dow 30 short (DXD) volume: up 88%

    I agree with going with the QID , am invested in same currently . I also am in agreement with your current market assessment . Good pts to ponder . Merry Christmas . Bill

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