GMI: +6; up-trend intact; Cramer and MO

The GMI remains at +6 and things held steady Thursday in spite of declines in the averages.   Only 38% of the Nasdaq 100 stocks advanced, along with 26% of the S&P 500 stocks and 17% of the Dow 30 stocks.  However, the percentage of stocks in my universe of 4,000 that are in a short term up-trend increased to 43%.  There were also 214 new highs, and 73% of the stocks that hit a new high 10 days ago closed higher on Thursday than they did 10 days earlier. Thursday is day 3 (U-3) of the QQQQ up-trend. Two former leaders showing strength Thursday are FORD  and XWG (I own this).

Thursday night, Cramer cited a Morgan Stanley report released earlier on Thursday estimating that MO’s break up value far exceeds the price of the stock.  Cramer’s Real Money website had also talked up the stock early Thursday afternoon, so MO had already advanced more than 2% by Thursday’s close when Cramer talked about the stock.  When I take a look at MO’s chart (click on to enlarge) I notice a HUGE volume up day on August 18.   I don’t want to be paranoid, but could it be possible that some people knew that MO was going to be up-graded almost 3 weeks before all of this publicity broke?  Maybe it’s all a coincidence, or a number of big buyers came to similar conclusions regarding MO’s being a great bargain, well in advance of the annnouncement??!!  The only consolation for us, is that we technicians might also have jumped on this train in mid-August when MO rocketed to that new high. Will all these "lucky" early buyers of MO unload their shares Friday to the recipients of all of this media hype?  What do you think?

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