GMI: 1; GMI-S: 6; D-3; Plenty of time to catch a new up-trend

The GMI is still one, and the GMI-S is 6.  Wednesday was the third day of the new QQQQ down-trend (D-3).  The Worden T2108 indicator is at 19, up from a low of 15 last Friday.  On Wednesday, there were 42 new highs and 435 new lows in my universe of 4,000 stocks.  Since the QQQQ peaked on 7/19, the index has fallen 4.8%, and 87% of the Nasdaq 100 stocks have declined, 57% are down more than 5%.  Why fight these odds? I am in cash or short.

This is a great time to sit back, enjoy a summer vacation, and ride the down-trend or wait for a turn. The last QQQQ up-trend lasted 80 days.  There were plenty of gains to be made even if  one missed the turn on April 3.  For example, from April 18 (U-11, the 11th day in the new up-trend) to July 19, the QQQQ rose 11.8% and 56% of the Nasdaq 100 stocks rose 5% or more; 30% rose 15% or more.  One does not have to catch the beginning of a genuine up-trend to profit in the stock market.  It is best to be patient and wait for the GMI to rise above 3.


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