The GMI and GMI-R remain at zero. Wednesday was the 17th day of the current QQQQ down-trend. There were only 7 new highs and 100 new lows in my universe of 4,000 stocks on Wednesday. The Worden T2108 indicator is now at 19%, a level at which some bottoms have occurred. It is still best for me to remain on the sidelines until the GMI rises to at least 3. I try to always trade in sync with the general market trend. Since I identified the beginning of the current QQQQ down-trend on September 2nd, the QQQQ (Nasdaq 100 index) has declined 10% and 83% of the Nasdaq 100 stocks and the S&P 500 stocks have declined. Why fight these odds?
Month: September 2008
GMI: 0; GMI-R: 0; 16th day of QQQQ down-trend; Worden T2108: 22%
The GMI and GMI-R remain at zero. Only 10 new highs and 66 new lows in my universe of 4,000 stocks on Tuesday. This is not a market for buying stocks at new highs or at breakouts. The Worden T2108 is now at 22%, a level where a bottom could occur. Nevertheless, the major indexes remain in confirmed down-trends. It is nice to be on the sidelines in cash.
GMI: 0; GMI-R: 0; 15th day of QQQQ down-trend
My market indicators are back to zero. There were only 18 new highs and 28 new lows in my universe of 4,000 stocks on Monday. Time to be on the sidelines, safely in cash. A market like this may be great for day traders, but not for methodical trend followers. If you can't resist being in the market, you have an addiction, not a serious money making pursuit.