GMI stays at +6. 58% of the Nasdaq 100 stocks rose Monday, compared with 50% of S&P 500 stocks and 47% of Dow 30 stocks. There were 306 new yearly highs in my universe of 4,000 stocks. 84% of the 70 stocks that hit a yearly high 10 days ago closed higher on Monday than 10 days earlier. Buying stocks at new highs has therefore likely to have been profitable the past 2 weeks. More than one half of stocks (53%) are now in a short term up-trend and 78% of stocks that doubled in the past year closed above their 30 day averages. 64% of all stocks closed above their 10 week averages. One third of all stocks closed within 5% of their 52 week highs. This is day 5 (U-5) of the up-trend in the QQQQ. To sum it all up, the market remains strong and buying strong stocks near new highs appears to be a winning strategy…………….
I have been writing about the strength in GOOG during the past few weeks. Monday, the stock broke above $300 again. Now that the hype about GOOG has died down, the stock is showing signs of new strength. Its 10 day average (dotted line) has now crossed above its 30 day average (red line). Can $400 per share be far away?
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