While the market weakened Tuesday, it refused to cave in. The GMI remains at +2, but there are positive and negative signs in this market. There were 90 new highs in my universe of 4,000 stocks, very close to the 100 needed to turn that indicator positive. But there were also 36 new lows, the most since June 27. The percentage of stocks in a short term up-trend rose to 26%, up from a low of 20% last Thursday. The QQQQ is in its 6th day of decline (D-6). The DIA closed below its 50 day average for the first time since July 7. However, the SPY and QQQQ held above their 50 day averages. Only 23% of the Dow 30 stocks advanced, compared to 34% of the Nasdaq 100 and S&P 500 stocks.
The market still has not chosen a definite direction. My IRA remains mostly in cash with a few puts, but I remain ready to hop on the train when a real trend develops. Wednesday evening is the IBD Meetup. I am interested in assessing the members’ sentiment towards this market.
Please send me your feedback at: email@example.com.