The GMI is now at 3++ and could easily turn 5 on Tuesday, if the market rises. Note that I clarified in the table that the 10 Day Successful New High Index is positive if the number is greater than or equal to 100 or 50%. The QQQQ is now in its second day of an up-trend (U-2) and has now closed above its 10 week average for the past two weeks. The SPY (and DIA) remains below its 10 week average. The Worden T2108 indicator is now at 39%, having marked the bottom in August with an extreme reading below 8%. Note also that the Small Cap 600 Index ETF, IJR, is very strong, with 100% of its four short term indicators positive…..
I look forward to market declines when it is much easier to see emerging leaders. Stocks that hit new highs quickly after a decline are often likely to lead if the market turns. I scanned all of the 400+ stocks that appeared on various IBD100 stock lists from the past year and found that 20 hit new highs on Friday. (This is impressive, given that only 66 stocks in my entire universe of 4,000 stocks hit a new high on Friday.) The IBD100 stocks at new highs are, in no special order: GME,ZUMZ,DKS,SII,PCLN,CAM,ATW,CHL,OTEX,RIMM,OVTI, ASEI,GRMN,SYNA,EXM,DRYS,NVDA,NOV,LAYN,VIP. I will watch these stocks closely (some of which I wrote covered calls on) over the next few weeks. So many people fear September as a weak month for the market, that I suspect the market may surprise us this year.