The market finally confirmed its up-trend on Tuesday and the GMI turned 6. The techs are the new leaders; 90% of the Nasdaq 100 stocks rose, along with 81% of the S&P 500 stocks and 83% of the Dow 30 stocks. There were 208 new yearly highs in my universe of 4,000 stocks. 82% of the Nasdaq 100 stocks are now above their 30 day averages. Monday was the 17th day in the QQQQ up-trend. The GMI-S is now 94, with all but one of the short term indicators positive for the SPY, DIA, QQQQ and IJR. Seven of the stocks from the IBD100 list published on 8/14 hit a new high on Tuesday: SAIA, BRLI, ATRS, CXW, WCG, ISYS and PNFP. In addition to holding QLD, an ETF that climbs twice as much as the QQQQ, I am beginning to search for other stocks breaking out.
While the media suggests this rise is the result of falling oil prices, I think the market’s strength stems from the declining short term interest rates, suggesting that the Fed will hold at the next meeting (see prior posts). Time to buy stocks….
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