Thursday, March 18, 2010

GGT LCR Timer (slow) Remains Indicisive @ Long-Cash (0) Status

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Even though the GGT Price Index moved to the all-time high of $24.99 on Wednesday on solid volume, and despite the fact that the Long-Cash Ratio (LCR) pushed upward to 3.532 (2483 stocks LONG, 703 stocks CASH), the confirmation signal on the GGT LCR Timer remains at a 0-level, which is 1/2 of the way between LONG (+1) and CASH (-1).  A strong day today in the markets will cause this to push back to +1, and a positive but weak day (ADV/DEC roughly equal) will cause this to move to -1.

Simply be advised.

The DJ30 Strength Index, which is literally composed of the 30 stocks of the DJ30, hit an all-time high of 1.0.  While it is too early to add to a contra (we could certainly hit another 1.0 today), any strength in DOG (Strength = -3) or DXD (Strength = -5) could be a prudent hedge.

The S&P500 Strength Index hit an all-time high of 1.0.  Again, while it is too early to add to a contra, any strength in SH (Strength = -3) or SDS (Strength = -3) could be a prudent hedge.

The NASDAQ 100 Strength Index FELL on Wednesday to 85%.  Hedge positions for the NDX100 are PSQ (Strength = -1) and QID (Strength = -5).

The S&P 400 Strength Index is at 97.4%, up 2% on Wednesday.  Hedge positions for SP400 are MYY (Strength = -3) and MZZ (Strength = -3).

The S&P 600 Strength Index is at 83%, up 12% on Wednesday.  Hedge positions for SP600 are SBB (Strength = -3) and SDD (Strength = -5).

The Russell 2000 Strength Index is at 79%, up 6% on Wednesday.  Hedge positions for the Russell 2000 are RWM (Strength = -3) and TWM (Strength = -5)

The strengths of various ETFs and Stocks can be found in the Files section of the Yahoo GGT  website, and they are updated at least on the weekends (sooner if I could find people willing to sign a non-disclosure form).  Let me know if you're interested.

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Remember, you are responsible for your own trading decisions, not me.  Do you homework.

Regards,

pgd