The GMI and GMI-R remain at zero. There were 36 new highs and 962 new lows in my universe of 4,000 stocks on Tuesday. At the bottom on July 15, we had 988 new lows. The Worden T2108 indicator rose to 26%, and the CBOE volatility index hit an intraday high of 33.7%. Thus, Tuesday may have been a bottom, for now. Tuesday was the 11th day of the current QQQQ down-trend. The best place to be right now is in cash, as the market sorts out the financial turmoil.
Month: September 2008
GMI: 0; GMI-R: 0; 10th day of QQQQ down-trend; Worden T2108: 21%; Interest rate cut coming
The GMI and GMI-R remain at zero. There were 25 new highs and 609 new lows in my universe of 4,000 stocks on Monday. The Worden T2108 is now at 21%, near the area where prior bottoms have occurred. In addition, the VIX, CBOE volatility index, is now at 31.7, also in bottom territory. Finally, the short term interest index is screaming an interest rate cut. Note the huge gap down on Monday.
Tuesday should be a critical day, one worth watching the Fed from the sidelines. If you heeded the GMI and this blog, you should have been protected from most of this carnage. I remain mainly in cash.
GMI: 0; GMI-R: 0; 9th day of QQQQ down-trend; Tuesday rally if FED lowers rates?
The GMI and GMI-R remain at zero. Friday was the 9th day of the QQQQ down-trend. There were 28 new highs and 164 new lows in my universe of 4,000 stocks on Friday. If the FED lowers rates on Tuesday we could have a massive rally. I would be very cautious with any short positions.