The GMI rose to 4 and the GMI-R to 6. I will have to wait until Monday to get a better idea of the trend. Another up or flat day for the QQQQ on Friday would begin a new QQQQ short term up-trend count. Let’s get past option expiration first.
Month: November 2010
GMI declines to 2; IBD announces correction; bounce coming?
Thursday marked the first day of a new QQQQ short term down-trend. And I noticed that IBD now thinks the market is in a correction. The up-trend lasted 51 days. In the past, short term down-trends have tended to be of much shorter duration. A lot of stocks I watch now have low stochastics and are oversold. In fact, 38% of the Nasdaq 100 stocks fall into oversold territory. So, with this morning’s futures much higher and option expiration coming tomorrow, we will get a bounce here, but for how long? I remain long in my pension mutual funds, but am mainly in cash in my other accounts. I will wait for next week to determine my next move.
GMI falls to 3; QQQQ short term down-trend imminent
The GMI fell to 3 and the more sensitive GMI-R to 4, and it is likely that the QQQQ short term trend will turn down on Wednesday. I am closing out positions in my IRA. The T2108 fell to 43%, although it is still a long way from the typical readings near the bottoms of declines. If a new down-trend is confirmed on Wednesday, I may buy some QID to ride the down-trend. The longer term market trend remains up.