The GMI remains at +6. However, Tuesday was a weak day with only 29-33% of the Nasdaq 100, S&P 500 and Dow 30 stocks advancing. 
There were only 114 new highs and almost as many new lows (95) in my universe of 4,000 stocks. Tuesday was the eleventh day (U-11) in the current QQQQ rally.
I thought you would appreciate this response from a reader:
"I have to thank you again and again for recommending
Stan s Weinstein’s book! It is better than O’Neil’s,
and it is more applicable than both the Darvas books,
although the Darvas principles are there. The great
thing about Weinstein’s book is that he uses the
objective criterion of the 30-week MA, so now I can
buy into the hottest mutual funds, ride them up, and
get out when the 30-week starts declining. I am now
doing over 20% in Vanguard because I put > half my
retirement into Energy.
After reading Weinstein’s book, I have to respectfully
disagree with you that "trading decisions should not
be made solely according to a chart. (Why not buy
stocks that look technically strong AND that have good
fundamentals?)." Weinstein gave many examples of
stocks that increased dramatically when earnings were
decreasing. After missing and watching IIJI almost
triple in 3 weeks this year despite a negative 57% EPS
Qtr to Qtr growth rate, I vowed never again to pay
attention to earnings. As Darvas pointed out, if the
chart is going up, that’s the only valid reason for
buying. Following the chart alone, I am up 30% in my
individual stock account since May 2005. As Weinstein
says, "The tape tells all." If earnings are important
for a certain stock, the chart will show it. Cramer
is making people waste time doing "homework." Spend
1/10 the time looking at charts and a person will do
much better."
I actually agree with this person’s point of view. I just find that I can sometimes hold onto a stock better if I know there are some earnings or revenue growth behind its strong chart.
Please send me your feedback at: silentknight@wishingwealthblog.com.