Dr. Wish

QQQQ short term up-trend still in peril; GMI: 2; GMI-R: 3

@ 8:47 am

The QQQQ short term up-trend completed its 10th day on Monday.   But it is right on the critical 30 day moving average (28.91).   I remain in a few long positions, but am ready to throw things into reverse if the market turns down. We remain in a major long term down-trend and any counter trend rally can quickly fail.   There were 5 new highs and 72 new lows in my universe of 4,000 stocks on Monday.   The last time we had more new highs than lows was September 19.

Cash secured puts expire profitably; 9th Day of QQQQ short term up-trend; GMI: 2; GMI-R:4

@ 12:01 am

GMI1219The cash secured puts I sold all expired unexercised, so I made money the past month.   I will write about this promising strategy in the future.   Meanwhile, the indexes are in up-trends, but still relatively weak.   This week we shall see if we can get more confirmation of the up-trend.   I will sell more puts in early January if the market holds.  

The GMI remains at 2 (of 6) and the GMI-R at 4 (of 10).   The Worden T2108 indicator is 56%, in neutral territory. Three IBD100 stocks hit a new high on Friday:   CWT, EBS and SHEN.   I own CWT and successfully wrote December puts on EBS in early December.

GMI: 2; GMI-R: 4; options to expire

@ 12:01 am

Thursday was the 8th day of the current QQQQ short term up-trend.  The GMI and GMI-R remain unchanged, at 2 and 4, respectively.  There were 11 new highs and 40 new lows in my universe of 4,000 stocks on Thursday.  Four of the new highs were on some of my IBD100 lists from the past year:  DLTR, CWT, SHEN and THOR.  These stocks may be among the new market leaders if this up-trend holds.  Meanwhile, options expire on Friday, and I believe that all of the cash secured puts I sold will expire worthless, and profitable for me.