The GMI remains at a strong +6. I was talking to a retiree I know who is very active in the market. He buys a large basket of stocks and is usually optimistic. I was surprised to find that he is very pessimistic about the state of the market and economic conditions. He is mainly buying preferred stocks and dividend paying stocks. I told him that I was bullish, not only because the GMI shows the market is rising, but because the news could not get much worse. With the exception of a terrorist incident in the U.S. or a second hurricane, I just think conditions and sentiment have to improve. I therefore remain true to the GMI and am accumulating stocks. There just are too many technically strong stocks out there. Have you noticed that GOOG has held up and looks like it may be starting another rise. Other stocks I own or am looking at include GME, GNSS, LEH, ARE, HANS, WFMI, QQQQ. I am still short a home builder–this sector looks toppy to me, and SBUX, which has steadily weakened since I flagged it as a sick stock on my post on 8/27.
There were 291 new highs Wednesday and 39% of stocks in my universe of 4,000 are in a short term up-trend, the most since 7/29. 64% of stocks that hit a new high 10 days ago closed higher Wednesday than 10 days earlier. Those of us who buy stocks at new highs are likely to have had some success. Almost one third (32%) of stocks in my universe are within 5% of their 52 week high and only 4% are near their 52 week low. 62% of stocks closed above their 10 week averages. How can anyone argue with calling this an up-trending market?! Between 59%-67% of the stocks in the Nasdaq 100, S&P 500 and the Dow 30 indexes advanced Wednesday. We are in day 2 (U-2) of the QQQQ up-trend……………………..
I am slowly recovering from the recent catastrophe, but am still a little reticent to talk about making money in these times of difficulty for many people. I hope you are doing better also.
Please send me your feedback at: firstname.lastname@example.org.