The GMI held at 6, but only 14-20% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes advanced on Friday. There were 258 new highs in my universe of 4,000 stocks. The GMI-S fell to 94, with the weakening of one of the short term indicators for the QQQQ. Still, Friday was the 50th day in the current QQQQ up-trend and the 11th week that it has closed above its 10 week average.
The IBD 100 stock lists that I have been following did a little better than the Nasdaq 100 stocks on Friday. 22-33% of the stocks in the four lists below advanced on Friday. The list from 10/16 had 14 new highs, but only 43% of these 100 stocks closed higher than they closed on 10/16 when the list was published. The 14 stocks from the 10/16 list that hit new highs on Friday were: HXM,CELG,DRIV,JLL,GRMN,ROG,WCG,TV,SIM,
Monday’s IBD says that the put/call ratio from Friday was .94. As long as there remains such a high amount of pessimism exhibited by the options players, this rally probably has further to go. Put/call ratios near one are rare and typically occur only after a sustained decline. This is a rally that traders love to hate…..