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GMI: 0; GMI-R: 0; 2,832 new lows on Friday; T2108: 1%; Our embarassing failure to educate youth about the market
The GMI and GMI-R remain at zero. On Friday, there were 23 new highs and 2,832 new lows in my universe of 4,000 stocks. This is the largest number of daily new lows since I started this blog three years ago. The Worden T2108 indicator remains at 1%, about as low as it gets. This is the time to be on the sidelines in cash. No one knows when this down-trend will end. Friday was the 29th day of the current short term down-trend in the QQQQ... It is amazing how Jim Cramer is now claiming to have been urging people to be in cash. The truth is that he and the other market pundits have been urging people to buy stocks all the way down. At no time did any of them say to go mainly to cash. Cramer has repeatedly ridiculed the use of charts. But it is the chart patterns that warned me to get out of this market recently, and in 2000. I started this blog to give the little guy (and gal) a chance to learn how to discern the market's trend. When the trend is down one should not be looking for stocks to buy. One goes to cash or goes short. There will be plenty of time to ride the next up-trend once it has proven itself.... It is a crime that we do not teach people how to think for themselves when they invest their hard earned money. High schools and universities should require students to attend classes in financial planning and investments. I teach an honors course at the university and my students have a thirst for knowledge about the market. They often report that my class on technical analysis is the most practical course they have attended and that it should be required for all students. Why do we fail to educate our youth about such an important topic? Think how many of our ageing baby boomers are now looking at greatly reduced assets for retirement. It is painful to me to consider the ramifications of this colossal failure to educate our citizens about how to manage their stock market investments. by Dr. Wish (Wishing Wealth) Disclaimer: Please note that charts and commentary provided by the moderator are for educational purposes only. Any trades placed upon reliance on the moderator’s charts or information is taken at your own risk for your own account. Past performance is no guarantee of future results. While there is great potential for reward trading stocks, futures and options, there is also substantial risk of loss and you must decide your own suitability to trade. Future trading results can never be guaranteed. This is not an offer to buy or sell stock, futures, options or commodity interests. Most trading systems are based on historical formulas which have worked in the past. However, what has happened before may or may not happen again. You can lose all your money trading stocks, futures, and options and you must decide your own suitability as to whether or not to trade. Only trade with true risk capital you can afford to lose. Only trade markets you can properly afford to trade. Properly funded trading accounts typically perform better than those that are not. Never risk more than 2-3% of your account on any one trade. Always define your risk before entering a trade and place a stop to limit your risk. There are no guarantees or certainties in trading. Trading involves hard work, risk, discipline and the ability to follow rules and trade through any tough periods during a system’s draw downs. If you are looking for a guarantee, trading is probably not for you. Most people lose money trading. One of the reasons is that they lack discipline and are unable to be consistent. A system can help you become consistent. Ironically, worrying about the monetary aspect of trading can contribute to and cause a trader to make trading errors. Therefore, it is important to only trade with true risk capital. |
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