All indicators held on Friday, as the GMI remains at +5. Only the Daily QQQQ Index is negative, with the QQQQ in its eleventh day of a short term down trend (D-11). There were 307 52 week highs in my universe of 4,000 stocks. 33% of the Nasdaq 100 stocks advanced on Friday, along with 45% of the S&P 500 stocks and 47% of the Dow 30 stocks. 37% of stocks are in a short term up trend and 69% are in a longer term up trend. 39% of stocks closed above their 10 day average for the past 4 days, an indication of strength. 31% of all stocks are within 5% of their 52 week highs………….
The WPM clearly highlights the lagging Nasdaq 100 stocks. Only the QQQQ failed to close above its 30 day average. In addition, only 47% of its components stocks did so, compared with 59% or more of the components of the other four indexes. In contrast, all five indexes closed above their longer term 30 week averages, as well as 63% or more of their component stocks…….
I should not spurn all stocks now just because the Nasdaq 100 type stocks are relatively weak in the short term. There are plenty of big cap stocks (especially financials) and small and mid-caps that are in up trends and ready to purchase. Nevertheless, it is always better to have all of these indexes in synch with each other. Some stocks I am looking at are: KOMG, ADAM, OXPS and ET.
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