GMI:0; GMI-R: 0; Worden T2108: 21%; In cash and puts

The GMI and GMI-R remain  at zero.  Thursday was the eleventh day in the current QQQQ short term down-trend.  There were 30 new highs and 578 new lows in my universe of 4,000 stocks on Thursday.  A lot of the new highs are being achieved by bond funds and the new inverse ETF’s that rise when the market falls.  Still, the number of new lows is a lot less than the 730 and 1,011 registered on January 8 and 9.  So the current decline is not driving as many stocks to new 52 week lows. The Worden T2108 indicator is at 21%, still above the level reached in recent bottoms.  The decline last August ended with the T2108 at 7.7% and the decline in June, 2006 ended with it at 13.6%.   T2108 is the percentage of NYSE stocks that closed above their 40 day moving averages…….

I made money today in the declining market as my put options gained.  I remain largely in cash though, given that the market could bounce strongly at anytime.  When the GMI rises to around 3, I will consider going long again, or I will add to my shorts after a failed rally.  Remember, no one can consistently predict when a trend will end.  We just have to wait for the turn to manifest itself.

1 thought on “GMI:0; GMI-R: 0; Worden T2108: 21%; In cash and puts”

  1. Dr. Wish,

    Will you short individual stocks if this market turns into a bear? Or will you stick with Puts and ETF’s to get your short exposure?

    Thanks for the excellent blog!

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