Swing Trading Strategies & Stock Picks Since 2003

My two GMI indicators remain at zero.  Friday was the 19th day of the current QQQQ down-trend.  There were only 5 new highs and 189 new lows in my universe of 4,000 stocks on Friday.  The Worden T2108 indicator is at 22%.

I have been writing about how I remain largely in cash during market declines.  A lot of people think highly of Nicolas Darvas, who made a fortune in about two years of trading in the 1950's (see favorite book list to lower right).  In his later book written in 1977, Darvas wrote:

"Of course there are exceptions to the rules.  There have been any number of stocks that have multiplied in price manyfold in a bear market, just as there are plenty of stocks that have hardly moved in a bull market.  But my temperament is such that I prefer to be safe than sorry.  So I keep out of a bear market and leave such exceptional stocks to those who don't mind risking their money against the market trend." (You Can Still Make It In The Market, 1977, p. 126).

 I too have found my odds of profting are much better if I trade consistent with the market trend.  So, I remain mainly in cash and hold a few puts in my IRA.