The GMI remains at zero (of 6), and the more sensitive GMI-R is at one (of 10). 36% of the Nasdaq 100 stocks are now above their 30 day averages, the highest percentage since September 3rd. This is a time to watch patiently for a sign of a change in trend. The indexes are gaining strength, but the key is to wait for a definitive sign of a change. The odds always favor a continuation of the trend, which in the case of the QQQQ, has been down for 66 days. If the GMI rises to 3, I will start going long in at least QLD, the QQQQ ultra-long ETF. I also like a number of the stocks at new highs that I wrote about yesterday.
Dr. Wish
GMI: 0; GMI-R: 1; EBS–another new high; 65th day of QQQQ short term down-trend
The GMI remains at zero, but the GMI-R rose to one. There were 6 new highs (EBS, LHCG, CBST, UTI, TLH and OSIR) and 92 new lows in my universe of 4,000 stocks on Tuesday. EBS continues to show outstanding strength, and the other 5 new highs also bear watching. Some look very promising. Monday's decline might have been a false move. Let's see if the market can recover all of the losses this week. Tuesday was the 65th day of the current QQQQ short term down-trend.
GMI: 0; GMI-R: 0; Down-trend continues; 64th day of QQQQ down-trend; EBS strong; in cash or short
The GMI and GMI-R are both back to zero. There were 8 new highs and 117 new lows in my universe of 4,000 stocks on Monday. The QQQQ failed to break through resistance and Monday was the 64th day of the current QQQQ short term down-trend. EBS shows amazing relative strength, hitting a new high and ending down only 0.25. Best to remain in cash or short.