Up-trend solidifies; T2108 highest since early September (54%); GMI: 2; GMI-R: 4
The GMI and GMI-R are back to 2 and 4, respectively. The QQQQ short term up-trend has continued for 6 days, and typically an up-trend lasts for a while after it passes 5 days. The Worden T2108 indicator climbed 22, to 54% and is now at its highest level since September 2nd. 73% of Nasdaq 100 stocks closed above their 30 day average, the most since August 28th. This market continues to gain technical strength. I find that I must tune out the media, who are embracing an ever declining bear market. Last weekend I became optimistic after studying my charts and then became very anxious when I listened to the Fox channel business shows on Sunday morning. The pundits tend to drive with their hands on the rear view mirror. The truck/car is moving up and I am slowly jumping aboard. I can always jump off when it changes direction. I am gradually accumulating the ultra long index ETF's, QLD and DDM. Two of the stocks on my IBD 100 lists hit a new high yesterday, CWT (a water stock) and ALGT (I own some). In addition, it looks like all of the cash secured puts I wrote about several posts ago will expire on Friday unassigned, and highly profitable for me. In early January I will consider selling a new batch of cash secured puts. My university pension funds will remain in cash until the longer term trends turn up. Until they do, I consider this to be a short term rally within a solid down-trend. But short term rallies are tradeable for me……
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