The QQQQ rally finished its 6th day on Wednesday. There were 10 new highs and 12 new lows in my universe of 4,000 stocks on Wednesday. IBD 100 stocks (from my lists the past year) at new highs are: SNDA, CPSI, TNDM, ROH, SGP, MYGN and QSII. TNDM and QSII hit all time highs. The T2108 indicator is now at 63%, the highest level since January 13th. The market is not overbought until the T2108 rises to around 75%. So this market could climb a lot higher. The QQQQ remains in a counter trend rally, until it fails or the longer term trend turns positive. I will wait for the GMI to rise to 5 or above before I commit my university pension funds to the market. I have successfully avoided this bear. In the meantime, I trade on the long side in my IRA. I am slowly accumulating QLD as this up turn strengthens.
Dr. Wish
5th day of QQQQ short term up-trend; IBD100 new highs
The GMI is at 2 (of 6) and the GMI-R is at 6 (of 10). The QQQQ completed the 5th day of its short term up-trend. This is a counter-trend rally, with the long term trend remaining down. Still, this is a trade-able rally as long as it lasts. There were more new highs than lows (11 vs 8) in my universe of 4,000 stocks on Tuesday. Amazingly, 7 of the 11 new highs are stocks that were on my IBD100 lists from the past year: NFLX, GMCR, CPSI, TNDM, ROH, SGP and QSII. I own some of these, along with QLD. There is no way to know how long this rally will last, but it is nice to own a few rising stocks again.
QQQQ remains in short term up-trend within a longer term down-trend; IBD100-Nicolas Darvas type stocks near all-time highs
This is an extremely difficult market for me to interpret. The QQQQ completed the 3rd day of a short term up-trend, and the QQQQ completed its first week back above its 10 week average. There were 6 new highs and 25 new lows in my universe of 4,000 stocks on Friday. The last time there were more than 100 new highs was September 19, 2008. And there are very few stocks that have recently hit a new high and continued climbing.
The GMI is at 1(of 6), and the more sensitive GMI-R is at 4 (of 10). On the other hand, 94% of the Nasdaq 100 stocks closed with their MACD above its signal line, a testament to the recent strength of the QQQQ. With the T2108 at 38%, the market is no longer severely oversold, but it could still move up. Note that the QQQQ has been above its 10 week average for one week, while the SPY has been below it for 10 weeks. Unlike the QQQQ, the SPY contains financial stocks…