The GMI is back to 6 and the QQQ short term up-trend continues. The GMI indicator flashed a bullish trend signal on December 23rd, which remains in force. I wish everyone a wonderful Happy New Year.
Month: December 2011
QQQ hits resistance line; gold continues to break down
The QQQ hit a declining trend line on Wednesday. Tuesday was only the second day of its short term up-trend. The GMI fell to 4. One reason for the decline in the GMI is that the IBD Mutual Fund Index closed below its 50 day average. When the managers of these growth mutual funds cannot make money, neither can I. I wrote calls on some of my long positions to reduce possible losses. I also own a put on GLD, which weakened considerably on Tuesday. I have been writing for some time about gold’s weak technical pattern. Look at the weekly chart for GLD. I thought if might take longer to break below the low of two weeks ago, but I clearly was wrong. Click on chart to enlarge.
New QQQ short term up-trend; Worden 2012 Conference Tour; 23 stocks at new highs
As you know, I rely heavily on the Worden software, TC2000, for tracking the market and computing my GMI stats. The Worden 2012 Conference Tour is beginning in January and will visit the DC area on April 13 and 14. I am pleased to present 4 lectures during the two day conference. I hope to meet many of my blog readers there. My presentations will utilize some of the material I present to my university honors class. If you can’t attend, you might want to order the conference videos from them.
The bounce back rally is continuing and the QQQ short term trend has turned up. As you know, I prefer to wait for the new trend to persist for 5 days before I trust it. The DIA and SPY are becoming somewhat overbought. The Tech stocks, as measured by the QQQ ETF, are not overbought yet. So the techs may have further to go. Nevertheless, I am writing calls on some long positions and moving up my sell stops.
MY TC2000 scan found 23 stocks with good fundamentals that hit new highs on Tuesday. They are: WPC,ALXN,BWLD,CATM,ISRG,WYN,CPRT,MMP,EAT,VZ,MGRC,PETM,FEIC,SBUX,
SMP,SE,ODFL,PM,ARG,FAST,ORLY,SCSS,GR. This is a good list of stocks to research.