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7th day of QQQQ short term down-trend; in cash and QID but T2108 is near oversold; LULU holds

@ 7:00 am
GMI1/6
GMI-21/9
T210828%

The down-trend continued and the T2108 fell to 28% on Wednesday, not far from the area where bottoms occur. I remain in cash and in QID until the trend turns up. With the T2108 near oversold territory this is not the time for me to add to my short positions.

By the way, LULU, which I have written about several times, has held support during this decline.   Note the daily chart below. (Click on chart to enlarge.) Prior resistance level (note the horizontal line) has now become support, just below $74. To me, any stock in a strong up-trend that held during the recent decline has shown high relative strength and is therefore very promising. When the market strengthens, LULU may take off. LULU reports earnings on Thursday, March 17th.

6th day of QQQQ short term down-trend

@ 7:00 am
GMI1/6
GMI-20/9
T210834%

It was nice to be mainly in cash during Tuesday’s decline.     I own a little QID, which rises 2X as much as the QQQQ falls.   I will wait for the short term trend to turn up again before I acquire any long positions.   The key to success in the market   is to lose little during market down-trends. As long as the QQQQ remains below its 10 week average, I will not buy growth stocks. (Click on weekly chart to enlarge.) The longer term trend remains up, in a Stage 2 advance.

GMI at 1, as QQQQ short term down-trend completes 5th day; in cash and short; T2108 still neutral

@ 6:41 am
GMI1/6
GMI-21/9
T210844%

I never fight the trend of the general market.   With the GMI registering 1, and the QQQQ short term down-trend having reached its 5th day, I am confident that the best place to be in my short term trading account is on the sidelines or short.   So, I remain in cash and hold a small position in QID. The market peaked on February 16, weeks before the earthquake in Japan.   The   events in Japan have merely enhanced the speed and   the depth of the decline.

I have been writing about a possible change in trend since the up-trend ended on February 22, after its 64th day, and   IBD has called this market in a correction for days. The pre-market futures suggest we will get a large decline on Tuesday, at least at the open.   It is so much easier to profit from owning stocks during   an up-trend, why stay long during a down-trend?   It took me many years to learn this valuable lesson.   The longer term market trends remain up, for now. But remember, every long term down-trend begins with a short term down-trend.

The Worden T2108 Indicator is at 44%, still in neutral territory. A reading below 20% would encourage me to think the market is near a bottom. You can track T2108 yourself by using the Worden program at   www.freestockcharts.com and entering T2108   as the stock symbol. Look below at T2108 in a monthly time frame and you will see that many large market declines have ended with the T2108   below 20%. (Click on chart to enlarge.)