Monday was a standoff. The market had every opportunity to rise or fall but basically closed where it began the day. The GMI remains at +2. A number of my indicators did get stronger Monday, however. There were 88 new yearly highs and only 20 new lows. Stocks in a short term up-trend increased to 24% and now 52% of stocks in my universe of 4,000 stocks closed above their 10 week average. 56% of the Nasdaq 100 stocks rose, 58% of the S&P 500 stocks and 53% of the Dow 30 stocks.
I cannot stress enough the need to be patient now. The market will break either way soon, and it is important not to become attached to the bear or bull case. We need to wait until the market tips its hand and react accordingly………………….
Today, www.thekirkreport.com, an invaluable source of market news, posted a link suggesting that stocks at the top of the IBD 100 list make good short sale candidates. I think this article about the "curse" of the IBD 100 deserves our attention. I have often thought that by the time IBD ranks a stock very highly, it is too late to buy. But is it a good short? Check it out for yourself……..
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