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You Are Here: Home > Articles > Commentary > GMI error: 3 since December 30; GMI-R: 4; QQQQ...

GMI error: 3 since December 30; GMI-R: 4; QQQQ back near support
Jan 12, 2009

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Dr. Wish

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One of the GMI and GMI-R components counts whether the IBD growth mutual fund index is above its 50 day average.  My logic is that when these mutual funds are doing well, so will I be likely to, when I buy similar growth stocks. IBD no longer publishes the 50 day average for the mutual fund index, but the chart with the average is available on their website's stock charting application  (enter symbol: 0muti).  GMI0109 I do not check this chart every day and missed its cross above the 50 day on  December 30.  Thus, the corrected GMI has been 3 since then.  I am concerned, however, that its 50 day average is far below its 200 day average.  While the GMI is 3 and the QQQQ short term up-trend competed its 22nd day on Friday, the QQQQ  is just above support.  The more sensitive GMI-R has also fallen to 4. So, I have close sell stops on all of  my long stock positions and will get rid of QLD if the QQQQ starts a down-trend.  In that case, I may buy some QID to profit from a decline.  Options expire on Friday.


by Dr. Wish (Wishing Wealth)

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