GMI: 6; All indicators positive; T2108 only 55; OMX weak

The GMI has been at a maximum 6 since July 3.  (Note :  I mainly post when the GMI changes.)  The GMI has been 4 or above since March 20.   If I had merely bought and held the Ultra QQQQ ETF, QLD, since then, my portfolio would have increased by about 24%.  It’s that easy–just catch the trend and ride it until it ends.   Gmi0713 Of course, I did not do this, but I have done well during this time writing covered calls, and riding AAPL and GRMN and FTO, all of which I wrote about.  In fact, I would say that if one has not made money during this rally, s/he should just stop trading and invest in a mutual fund or the SPY. The market provides brutal feedback, one knows the score by whether s/he makes or loses money.

The T2108 is 55%, so this rally probably is a long way from the toppy 80’s. However, the QQQQ has closed above its 10 week average for 16 weeks. A close of this index below its 10 week average, currently 47.53,  would be a sign of weakness and a signal that the up-trend is weakening.  Meanwhile, I will not fight the tape, although I could not resist buying some puts on OMX, which is in a steady downtrend. Holding a short on one very weak stock will enable me to make money when this strong market starts to correct.


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