The GMI returned to a maximum reading of 6 and the GMI-R is now 100%. There were 377 new highs and 78 new lows in my universe of 4,000 stocks on Monday. Monday was the 42nd day in the current QQQQ short term up-trend and I have a large position in the QLD, which mimics the QQQQ. I am also writing covered calls again on rising IBD 100 stocks. I pay attention to the movement of the market and ignore the pundits and the news. When a car is heading towards me I don’t argue with it or complain that it is not supposed to be there. I must react to what is occurring. Similarly, I must ride the current market up-trend until it changes. And we are approaching the time of the year (November to April) when most market gains have occurred…….
One third of the stocks on the IBD 100 list published on October 15 hit a new high on Monday. Among these, the largest gainers were: FMCN, FTK, EDU, DSX, DRYS, VIP, CTRP, HDB, CMED, and RIO. These ten stocks each rose 4% or more on Monday. Note that while 33% of the IBD100 stocks from October 15 hit a new high, only 8% of the Nasdaq 100 stocks and 7% of the S&P 500 stocks did so. Who said that stocks play dead after they appear on the IBD100 list???!!
See my disclaimers below.