Dr. Wish

The GMI and GMI-R are both back to zero.  There were 44 new highs and 72 new lows in my universe of 4,000 stocks on Thursday.  Thursday was the 31st day of the current QQQQ down-trend.

The GMI remains at zero (of 6) but the more sensitive GMI-R rose to 2 (of 10).  There were 74 new highs and 23 new lows in my universe of 4,000 stocks on Wednesday.  The Worden T2108 indicator jumped to 34%, well out of bottom territiory.  This pendulum of the market needs to rise above 70% before we start looking for overbought territory.  It bottomed out at 8% in early July.  The QQQQ remains in a down-trend, Wednesday was the 30th day of this trend.  Still, a lot of NASDAQ stocks are bouncing back and I am doing some cautious pilot buys in such stocks as AFAM, SOHU, BABY and NUVA, and placing close stops below support. IBM also looks strong. CPST looks toppy to me on the daily chart–head and shoulders?

The GMI remains at zero, and the GMI-R, at one. The Worden T2108 indicator is now at 29%, up from an extreme low of 8% on July 7.  41% of the Nasdaq 100 stocks have now closed above their 30 day averages, also up from a low of 8% on July 7. Tuesday was the 29th day in the current QQQQ down-trend. I am mostly in cash but am nibbling at a few strong stocks that are near new highs and in strong up-trends. As soon as I make each small pilot buy, I put in a sell stop to minimize any inevitable losses.  It is so much easier to make money on the long side during market up-trends.