GMI: 6; No longer long stocks; QID

The GMI held to 6 Tuesday–barely.  Another down day in the QQQQ will reduce the GMI at least one point.  Note there were only 126 new 52 week highs in my universe of 4,000 stocks.  Gmi1219_1 Only 46% of the 514 stocks that hit a new high 10 days ago closed higher on Tuesday than they did 10 days earlier.  Failure of new highs to hold up is a sign of market weakness.  Only 37% of the Nasdaq 100 stocks advanced, along with 57-60% of the S&P 500 and Dow 30  stocks.  The Nasdaq 100 stocks are clearly lagging.  Only 49% of them closed above their 30 day averages, the lowest percentage since this rally began in mid-August, and well down from a peak of 88% reached in October.  The IBD 100 list from 12/18 did better on Tuesday, 54% of them advanced and 72% remain above their 30 day averages. RIMM fell on Tuesday, but GOOG and AAPL bounced…….

I am sorry, but I don’t like this market and I have told you I am a chicken.  It has been 17 days since the QQQQ hit a recovery high, the longest such stretch since this up-turn began in mid-August.  Tuesday was the 86th day of the current up-trend in the QQQQ.  The MACD for the QQQQ continues to decline.  I am out of all of my longs, and holding a small pilot position in the QID.  QID will rise if the QQQQ declines. Meanwhile, I will earn 5% interest in a money market fund as I wait for a clear trend.


1 thought on “GMI: 6; No longer long stocks; QID”

  1. Hey Dr. Wish, I was wondering if you knew what happened to QLD today to make it drop all the way to 83. Thankfully I was out of that security by last week, but why would it just drop like that when the QQQQ only dropped slightly?

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