The Interest Rate Index

WishingWealth 10 day successful new high index:   4/25   20; 4/22 19;   4/21    28;   4/20    12

Range since March, 2005:    8-106 (This index counts the number of stocks, of 4,000, that hit a 52 week high 10 days ago and closed today greater than they did 10 days ago.)   With only 20/4000 stocks hitting new highs   and continuing to rise, it would seem to me that this is not the time to buy stocks trading at new highs.   I will wait for a stronger market.   I have a similar index that counts new lows that continue to decline–it is 56 today.   New lows are a better bet than new highs these days.

Housing stocks (and MHS) popped today.   Housing’s   downtrend appears to me to still be intact.   The market’s volume on the rise seems unspectacular.   As I have noted before, I would need to see much more strength before my indicators would signal a turn.   Let’s see what happens after earning are all out.   Remember, all of these earnings represent the past and the market always is looking forward.

I received the following explanation about the short term interest rate index that I highlighted yesterday:   IRX-X data come   from the CBOE symbol IRX-E.   You can get more information on the IRX-X by clicking the link:

Interest Rate Options

As best I can tell, this index tracks the yield of the 13 week treasury bills.   Maybe we should be trading these options–as we saw yesterday, this index sure does trend.   If any readers know more about these options, please email me so I can pass it on.

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