QQQQ down-trend continues; Amazon kindles an impressive gain


There were 3 new highs and 106 new lows in my universe of 4,000 stocks on Wednesday.   The QQQQ completed the 17th day of its short term down-trend.   It would have to rise a lot more to begin a new up-trend.   Still, I cannot resist buying an occasional strong stock during a counter trend rally. One stock I own a little of is AMZN, a stock championed by Judy.

AMZN had a huge gap up on January 30th when it beat earnings estimates, then consolidated for several weeks.   (Looks like a head and shoulders bottom?) Today, AMZN appears to have broken out again.   AMZN has a great new product in the Kindle 2 digital reader.

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GMI and GMI-R are back to zero, QQQQ in new down-trend; TSYS and GLD; short or in cash


The GMI and GMI-R have been zero since Tuesday’s close.   There were 3 new highs and 424 new lows in my universe of 4,000 stocks on Wednesday. The Worden T2108 Indicator is now 21% and heading down from the reading of 89% on January 6.   In the November swoon, this indicator bottomed at 1.2%.   So we have a long ways to go to hit the same depths present at the November bottom.   The QQQQ is now in the 2nd day of a new short term down-trend.

If you go back a few posts you will see that I wrote that TSYS looked like a break-out from a cup-with-handle formation.   Well, that stock continues to surge higher and hit a nine year high ($9.93) on Wednesday.   William O’Neil has said not to buy break-outs in a bear market, but this may be the one needle in a haystack that will work out.   I continue to hold a few shares of TSYS…..

I am also holding puts on some stocks in my IRA.   One cannot use margin in an IRA so I cannot short stocks there.   But I can buy put options or inverse ETF’s.   I don’t know if it is too late to short weak stocks, but I know that buying stocks that are in down-trends has not worked for me.   Then again, my friend Judy does so well buying stocks that bounce off of their lows.   In fact, she recently bought GLD in the 70’s and still holds some.   Gold and silver (SLV) have been steadily advancing.   I remain mainly in cash.

The new 3x ETF’s–triple your pleasure — or pain


As you know, when I try to trade the trend of the QQQQ, I buy QLD (ultra long) or QID (ultra short) ETF’s.   These ultra   ETF’s are designed to move twice as much as the underlying index they track.   Well, less well known is that there now exist 3x ETF’s, designed to move three times as much as the underlying index. I knew about the recent emergence of these Direxion ETF’s, but was surprised to see how quickly they have caught on.   I have now located 16 of them, and 8 of them traded more than one million   shares each on the NYSE on Friday.   Here are the ones I have found.   Bull ETF’s: FAS, BGU, TNA, ERX, EDC, MWJ, TYH, and DZK.   Bear ETF’s: FAZ, BGZ, TZA, ERY, EDZ, MWN, TYP, DPK .   One can even trade options on most of these!   Remember, the leverage works both ways, they aim to go up or down at 3x the speed of the relevant index.   Still, if I have a good idea of the trend, these ETF’s may prove better than going to the casino and putting everything on black or red………..

Meanwhile, the GMI

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