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.