With GMI=0 and T2108 =27, cash is king


All 6 components of the GMI are negative, the first time this has occurred since May, 2016. The QQQ is now below its 30 week average and if the average turns down, I will go to cash in my university pension accounts. My trading account remains in cash and unscathed. I told you many times I am a chicken and exit my trading account quickly when I see signs of weakness. The put/call ratio on Monday =1.16, perhaps extreme enough to suggest a minor bounce. More significant is that T2108=27, well above the extreme reading reached at the bottom in February (see daily chart below). Bottoms are most likely when T2108 falls below 10. Cash is king….

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