The GMI fell to 5 on Monday, with only 94 new highs in my universe of 4,000 stocks. The GMI-S fell to 19, with few short term indicators remaining positive. I still think that this decline is setting up a rally when earnings come out in July. The major indexes are still above their 10 week averages. So, while the short term may look weak, the longer term up-trend is still intact. I am holding covered call positions and a lot of cash. GOOG and GRMN still look strong. And then there is IOC which is giving me 10% premiums on my covered calls. A lot of people must be betting that their natural gas find will pan out. I am very pleased to sell these persons calls on my shares at huge premiums.
I will let you know if my indicators weaken.
Note my disclaimers on my prior posts.
