To my visitors: I am only one trader, not a guru, and not a financial advisor. I am presenting my own opinions and my own experiences and people are welcome to decide for themselves what, if anything, on this site is of value to them. Please refer to the additional comments, highlighted in red, at the end of this post.
Another good day, but weaker than yesterday. There were 495 new highs, down from 629. Only 60% of the Nasdaq 100 stocks advanced, compared to 52% of the S&P 500 and 47% of the Dow 30 stocks. The GMI remains at +6. If you look at the chart of the Growth Mutual Fund Index in IBD, you will see that growth mutual funds are doing well now. The Index is well above its 50 day average, and rising. 84% of the stocks in my universe of 4,000 stocks closed above their 10 week averages and 65% of all of the stocks are in a short term up trend, up from 42% just 6 days ago. If we can’t generate profits in this market something is wrong with our trading technique…………………………..
Still, there were a few warning signs today. BOOM could not hold its gains today and NTRI and SHLD also retreated from their highs today. On the other hand, there was renewed life in CME and NDAQ and LDG today. SWN, BBY, MW and HANS are still consistent climbers. (I own some of these.) ………………………………..
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Please remember that the stock market is a risky place, especially now. I am not providing recommendations for you to follow. My goal is to share tools and methods that I have used over the past 40 years of trading, so that you may learn from them and adapt them to your trading style and needs. While I do my best, I do not guarantee the accuracy of any statistics computed or any resources linked to my blog. Please consult with your financial adviser and a mental health practitioner before you enter the stock market, and please do not take unaffordable risks in the current market environment. See the About section for more statements designed to protect you (and me) as you navigate this market. Past performance does not guarantee future results, but I would rather learn from a former winner than a loser.