No change in the GMI (+6) but the tech leaders are showing some signs of weakness. Only 35% of the Nasdaq 100 stocks rose on Wednesday, compared with 65% of the S&P 500 and 63% of the Dow 30 stocks. There were 237 new yearly highs in my universe of 4,000 stocks, but only 10% of stocks that have doubled in the past year hit a new high on Wednesday. Leaders that are downgraded by analysts or hit with bad news are gapping down. AAPL (-3.9%) is just the most recent example, after CMTL and CUTR recently. I am slowly being stopped out of my holdings because of my close sell stops. I will be content to buy stocks back at higher prices when/if they strengthen. Wednesday was the 31st day of this rally (U-31).
NOTE: A NEW SECTION TO THE BOTTOM RIGHT PROVIDES LINKS TO MY FAVORITE PRIOR POSTS. THESE INCLUDE MY STRATEGY POSTS, DEFINITIONS OF THE GMI COMPONENTS, AND MY ANALYSIS OF WHY THE TRADING TECHNIQUES OF THE GREAT NICOLAS DARVAS WORK BEST DURING BULL MARKETS AT ALL-TIME HIGHS.
How have you used this site to inform your trading? Can you send me some experiences I can post for others (anonymously, with your prior permission)? Please send your pearls of Wishdom to me at: firstname.lastname@example.org.