General Market Index (GMI) table

The media pundits are all predicting doom or gloom. I prefer to just analyze the current market’s trend and react to it. My indicators have alerted me to get out of the markets early in all major declines since 2000. I post what I am doing in order to teach other traders and investors. When the market closes (gray line) below its 10 week average I become defensive. When it closes below its 30 week average I begin to exit. Now that we are in Day 6 of the QQQ short term up-trend I am slowly adding TQQQ and buying  some individual biotechs and a biotech ETF. I only buy individual stocks that have traded recently at an ATH (all-time high). See my recent TraderLion presentation for my rationale. See also the current GMI table below.

Screenshot

This weekly 10:30 chart of QQQ shows it to have closed (gray line)  below its 10 week average (dotted line) on above average trading volume. Compare this pattern to the decline last March and April. The question remains whether QQQ will retake this average or decline to the 30 week average (red solid line) or to the prior green line. A close below the 30 week average and if the red line turns down would give me a major Stage 4 sell signal and the likely beginning of a major decline. Since 2000 this signal got me out early from all major declines. For now, I prefer to be mainly in cash with a little SQQQ in my trading accounts. I only go to cash in my university retirement accounts when the markets are in a Stage 4 decline.

The GMI is 1 (of 6) and on a RED signal.