The GMI is back to 1, for the first time since last February. The QQQQ, however, still remains in a longer term up-trend. While I therefore remain invested in mutual funds in my university pension, I remain largely in cash and short in my trading IRA. On Thursday, my IRA account gained in value. The key is to get out of the market during down-trends and to look on from the sidelines, in cash or short–at least in my trading account. Thursday was the 2nd day of the new QQQQ short term down-trend. Note that the Worden T2108 is now at 20%, at a level where some market bottoms have occurred.
Month: May 2010
First day of QQQQ short term down-trend
By my definition, the QQQQ up-trend ended Wednesday, after 52 days. A new short term down-trend has begun. I own some call options on TYP, which rises 3X as much as tech stocks fall. If this down-trend lasts 5 days, I will begin to add to my position in TYP. It is still possible this decline could end in fewer than 5 days, so I will wade in slowly. T2108 is at 38%; as it gets closer to 20% I will look for a bottom. The longer term trend (weekly) of the QQQQ remains up.
Short-term Indicators break down
Time for me to be very defensive, in cash or short. T2108 down to 50%. I prefer, however, to wait for one more negative day before I start the beginning of a short term down-trend in the QQQQ. QQQQ longer term (weekly) up-trend still intact.