Wednesday, June 2, 2010

LCR Change Timer -- Long --> (Long-Cash)

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Status:

LCR Change Timer:  Transitioned from Long (+1) to Long-Cash (0) with the close of June 1st.  I will protect gains on the long side, if any exist.
GGT Price is just above 23.6% Fib retracement support line
GGT Price is just above upward-trending support line (see weekend video blog)
GGT Price EMAs are all in a downtrend (bearish)
GGT Price is trading below all pricing EMAs (bearish)
GGT Price ROCs are all negative (bearish) and have reversed to point downward (bearish)
Slope of 65d EMA of GGT Price is negative (bearish) and has reversed to point downward (bearish)
GGT Volume was -8% below the 50d MA on Tuesday, but this is within a normal distribution (neutral)
Elder's 13d Force Index on the GGT Price continues negative (bearish) and is moving more negative (bearish)
GGT Long-Cash Ratio (LCR) fell to 0.170 from 0.195.  Another fall on Wednesday will cause the LCR Change Timer to transition to CASH
GGT LCR EMAs are all inverted (13 < 21 < 34 < 55) and are all trending downward (bearish)
GGT Strength Index has fallen to 0.17; values below 0.2 (unscientific) are considered oversold.  Watch for short-term bounce positive
GGT LCR ROCs are negative (bearish) but are trending sideways (neutral).  The database is struggling to move more positive and is not able to do so with any mass movement.
GGT Equity Curve based on the LCR Change Timer fell from $2.4822 to $2.4224 with Tuesday's action.

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We are decidedly bearish in the markets.  I will wait to the end of the day to view market action, and if we move south aggressively, e.g., Contra ETFs create new highs relative to yesterday's highs, I will add to my Contra ETF positions.

I am not opening any new long positions at the present time.

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

Regards,

pgd