ETF

The  QQQQ is one more down day away from a change in the trend to down.  Another down day will also likely turn the GMI to one. 

But it is important to wait for the signal and not to jump the gun.  I am mainly in cash and will buy some QID if the market falls on  Tuesday.  QID is an ETF that is designed to rise twice as much as the QQQQ declines–it is an ultra inverse ETF.  This has been the most difficult market for me to trade in a long time.  Another strategy would be to wait in cash until this market shows real signs of an up-trend. 

The GMI remains at 4 (of 6) and the GMI-R at 8 (of 10).  There were 53 new highs and 47 new lows in my universe of 4,000 stocks on Thursday.  The Worden T2108 indicator is at 53%, in neutral territory.  As this up-trend develops, I am accumulating the ultra long QQQQ ETF, QLD, and the ultra long ETF for the Dow 30, DDM. Thursday was the 7th day of the current QQQQ up-trend.

The GMI rose to 2 (of 6) and the GMI-R to 5 (of 10).  The more sensitive GMI-R is picking up strength in my very short term indicators.  A few more days up will turn the GMI positive and end the QQQQ down-trend.  The QQQQ completed the 35th day of its down-trend on Wednesday.  The Worden T2108 indicator is now at 37%, well into neutral territory.  There were 69 new highs and 63 new lows in my universe of 4,000 stocks on Wednesday. It is time to look for strong stocks that are breaking out.  Once the trend is up, I will discuss the stocks I am watching.  Right now I am wading into the ultra long QQQQ ETF, QLD.