To be successful in the market, I have to block out all other opinions and look at what the market is telling me. The market successfully tested support last week and the 30 week averages for the SPY, QQQQ and DIA are turning up. This is a classic Weinstein Stage 2 pattern. I get out of the market when the 30 week averages turn down and back in when they turn up. I know this seems simplistic and naive, BUT IT WORKS!! It keeps me on the right side of the market’s primary trend. And 70-80% of stocks follow the general market’s trend–end of story. The GMI is in an up-trend mode, going between 4 and 5.
It closed Friday at 4 with a GMI-R of 8. The market technicals snapped back last week, with the T2108 back to 70% and 79% of the NASDAQ 100 stocks closed with their MACD above its signal line (up from 10% last Friday). 72% of the NASDAQ 100 stocks are above their 30 day averages. There were 54 new highs in my universe of 4,000 stocks on Friday.
Stocks near all-time highs that I am watching and/or buying include: STEC, ARST, ORLY, ISH, MVL, NTES, GMCR, HMSY, ATNI, ARO, TEVA, ROST, EW, CERN, SNX. This list probably contains some rockets that will take me to the moon, as long as the market trend remains up. Remember, I always place a sell stop below support on stocks I buy, to limit potential losses. All stocks are bad unless they go up, and those that go up continue rising until they don’t.