While the Nasdaq 100 tech rally completed its 11th day, the rise has failed to produce many new highs. There were 8 new highs and 20 new lows in my universe of 4,000 stocks on Wednesday. 71% of the NYSE stocks closed above their 40 day averages, reflecting the strong but not severely overbought reading in the T2108 indicator.
Four of the 8 stocks at new highs are on my IBD100 lists: SNDA, MNRO, AZO and ROH. MNRO has a strong chart, rising on large volume. Both AZO and MNRO are in the auto parts/repair business. During a recession, people keep their old cars longer and must eventually repair them.
I remain cautious and largely in cash. I maintain small long positions in QLD (the ultra long QQQQ ETF), AMZN, NFLX, AAPL and GMCR. My sons tell me the new iphone release this summer will be extraordinary. This anticipated development may be why AAPL is holding up pretty well lately.
Eric, when are you going to place ALGT on your list of stocks? Since Jan it has formed a perfect BOWL or cup and is now forming the handle. Are you going to wait until it forms the handle?
Thanks for mentioning ALGT. I spotted it last night and mentioned it in my next post. I cannot add all strong stocks to my side-bar, however.
I mentioned ALGT a few times here since Feb. My entry was @33.40 but I base this only on its financial strength and consistently increasing EPS for many QTRs. Two weeks ago I noticed the bowl forming, but yesterday almost sold my holding at $48.50 but cancelled my order. Hope I am right abt forming the handle.