The GMI and GMI-R fell a little as the IBD growth mutual fund index fell back below its 50 day average. One good down day will tip my indicators to the negative side. The key is to be patient and not jump the gun.
GMI: 4+; GMI-R: 5+ Tipping point?
The GMI moved up to 4+ and the GMI-R stayed at 5+. None of the additional very short term indicators that I added to create the GMI-R improved on Wednesday. Too many of my other indicators are sitting right on support. A drop tomorrow would tip the balance to the negative. Given the extreme volatility recently, I am mainly in cash but poised to jump into the short side (QID) and into gold (GLD) or oil stocks if a down-trend is confirmed. In spite of the strength in the GMI, the recent market action makes me feel worn out and tired.
GMI: 3+; GMI-R: 5+ Be careful
The GMI fell back to 3+ and the GMI-R to 5+. Rarely have I seen such volatility. Time to be defensive, and not take big chances. The IBD Growth Mutual Fund Index is now back below its 50 day average. This means that the professionals who manage growth funds are not doing well. The QQQQ is also back below its 10 week average. I cannot consistently make money on the long side when these indicators are weak.