The GMI remains at zero (of 6) and the more sensitive GMI-R rose to 2 (of 10). There were only 11 new highs and 57 new lows in my universe of 4,000 stocks on Wednesday. The QQQQ is approaching a very critical resistance level. We will know in a few days whether the QQQQ can break out and whether a new short term up-trend is beginning. It is important to wait for the signal rather than to anticipate one. It could break either way. In the meantime, there are a number of technically strong stocks from the IBD100 lists the past year that I am watching: HMSY, SHEN, CWT, ASEI, INT, EBS, STRA, LHCG and PETS. I own small positions in some of these and will wait for the start of a QQQQ up-trend to buy more.
Month: November 2008
GMI: 0; GMI-R: 1; 61st day of QQQQ short term down-trend; EBS
No changes in my general market indicators. There were 5 new highs and 91 new lows in my universe of 4,000 stocks on Tuesday. EBS, which I wrote about weeks ago, continues to do well. ( I own a few shares of EBS and have written a call on them). Otherwise, I am mainly in cash and a little short.
GMI: 0; GMI-R: 1; T2108: 11%; 60th day of QQQQ short term down-trend
The GMI remains at zero (of 6), but the more sensitive GMI-R rose to 1 (of 6). I do not typically identify a tradeable up-trend until the GMI is at least 3, and this market is still a long way from a real up-trend signal. Monday was the 60th day of the current short term down-trend in the QQQQ. There were 3 new highs and 99 new lows in my universe of 4,000 stocks on Monday.