The GMI is now one, and the GMI-R is two. There are signs that a rally may be on the horizon. First, we are approaching the end of the first quarter and we can expect the mutual fund "window dressing" to boost the strongest stocks in the next two weeks. Why? Because each mutual fund quarterly report can show the presence of a stock in its portfolio without showing the date it was purchased. Thus, the fund manager looks like a genius who has held the winners for the entire quarter, instead of only days. Second, it is very rare for the Investor’s Intelligence poll to show more newsletters being bearish than bullish, but that is exactly the case now, and tends to happen near bottoms. Third, the MACD for the QQQQ index is showing a huge bullish divergence–the MACD failed to decline during Monday’s lower index low, to anywhere near as low as it (the MACD) reached in January’s decline. Fourth, the Worden T2108 indicator is now at 35%, up from 19% on Monday. And fifth, the percentage of Nasdaq 100 and S&P 500 stocks that are above their MACD signal line has been rising, suggesting at least near term strength in these stocks…
A lot of stocks I have been watching (RIMM, DAR, FDG, MOS, POT, CF, RRC, UPL) bounced off of support on Thursday. I may purchase some of these and place stops below Thursday’s lows. I already own FDG.
