With the GMI at 0, I am totally hedged and in cash. Another flat or down day will give me a second day with GMI less than 2, a major sell signal. I did not wait for this confirmatory signal to lighten up, however, because with the GMI at 0, I am ready to get defensive. I may start to transfer money in my university pension from mutual funds to money market funds. I do not like the current market pattern.
GMI declines to 3; new QQQ short term down-trend; Stage 4: HLF
Markets looking ugly again. IBD still sees correction. With new QQQ short term down-trend I am getting defensive again. Not looking for longs. I ran my scan looking for possible shorts, stocks that have climbed a lot in the past year and are beginning a possible Stage 4 decline. TC2000 came up with four stocks: CF,BIDU,FOSL,HLF. This weekly chart of HLF shows a stock that is breaking below its 30 week average (red line) with a pattern of high volume down weeks (red spikes). Click on chart to enlarge.
GMI declines to 5; 5th day of QQQ short term up-trend; ASPS charges on
The QQQ short term up-trend reached the 5th day but another down day on Tuesday could turn the short term trend down. Only 4 stocks were found by my scan that looks for stocks that hit a new 52 week high and have good fundamentals: DG, GNRC, OKS, ASPS. ASPS hasn’t closed below its 10 day average since October 21! The 10 day average in this daily chart is the blue dotted line. Click on chart to enlarge.
