Swing Trading Strategies & Stock Picks Since 2003

We may be getting close to a bottom or a bounce.  The Worden T2108 is now at 2%, the only lower reading since 1986 was during the October 1987 crash when it reached 0.5%.  This indicator means that only 2% of NYSE stocks closed above their average closing price over the past 40 days.  However, in spite of the large decline on Tuesday, there were considerably fewer new lows in my universe of 4,000 stocks than the day before, 1,296 vs. 2,119.  So, not as much weakness was exhibited on Tuesday as on Monday.

The best strategy is to stay out of the market or to be short.  Even Jim Cramer is now telling people to get out of stocks if they may need to use their funds in the next five years.  But most advisers are buy and hold, value addicts.  By now we should all see that value is a myth in the market.  A stock is only worth what someone will pay for it.  Don't be scared into this market.  We do not need to be in the market all of the time.  Every meaningful up-trend lasts for months, if not years.  There is plenty of time to get back into the market after a bottom is in and a new up-trend proves itself. When the GMI rises to 3 or more it will be time for me to tiptoe back into this market.  And remember that the market, which always looks forward,  will turn while the economic news is still bad.

Thank you again to all who have sent me messages about how they have used the information from this blog to protect their investments.