7th day of $QQQ short term down-trend; 100% in cash

@ 9:22 pm
GMI1/6
GMI-22/9
T210820%

The GMI remains on a Sell signal and I am 100% in cash.  The major indexes are in Stage IV Weinstein down-trends. I see no reason to be in this market except on the short side. But the holiday season is a nice time to just take a break from trading. The NYSE is in a BWR down-trend. Note the transition from an RWB up-trend to a BWR down-trend.

NYSE12202015

The Dow Jones 20 Transportation index looks even worse.

DJ2012202015And the SPY is not far behind.

SPY12202015

And then there is the wounded leader, AAPL.

AAPL12202015To survive in this business, one must protect capital and not fight the trend…..

GMI12182015

5th day of $QQQ short term down-trend; $AAPL weak, $ALKS has GLB

@ 9:30 pm
GMI2/6
GMI-27/9
T210830%

Last Sunday night I posted:

“With the major indexes so oversold, it is very possible that they will bounce on Monday. IBD  reports that the put/call ratio was 1.19 on Friday, showing extreme bearishness among option traders, and at a level at which bounces typically occur.”

IBD has now called the beginning of a new market up-trend, after a very brief market correction. The key question remains as to  how far this bounce will go. No one knows for sure, but with end of quarter and year end mutual fund window dressing almost upon us, we could see some strength for a few weeks. The QQQ closed at 113.98 but there is considerable resistance not far above, around 116. I am also concerned with AAPL’s continuing technical weakness, although it did find support at oversold levels on Wednesday.

AAPL12162015

TC2000 sent me an alert for a GLB by ALKS on Wednesday. ALKS rose to an all-time high on above average trading volume.

ALKS12162015