Given IBD’s new format, they now publish their Growth Mutual Fund Index every other day and without the 50 day average. I therefore have to calculate the 50 day moving average manually. Having just done so, I find that this index is now above its 50 day average, adding another point to the GMI and the GMI-R.
Dr. Wish
GMI: 3; GMI-R: 5; Short term indicators positive
The GMI rose to 3 out of 6 and the GMI-R to 5 out of 10. There were 105 new highs on Tuesday in my universe of 4,000 stocks, the first time there were
more than 100 new highs since December 26. 58% of the Nasdaq 100 stocks closed above their 10 week average. The Worden T2108 indicator is now at 60%. Nevertheless, the QQQQ and SPY have now closed below their 10 week averages for 16 weeks, and these markets remain in a down-trend. However, the short term trend is strong, with the GMI-S at 88%, reflecting that 14 of 16 indicators for four index ETF’s are now positive.
GMI: 2; GMI-R: 3; Signs of life in the bull; IBD 100 new highs
It appears that this market is looking for reasons to rise. The GMI is now at 2 out of 6 and the GMI-R is 3 out of 10. All of my very short term indicators for the SPY, DIA and IJR are positive. Only the QQQQ lags and this is the reason for the low numbers on the GMI and GMI-R which are weighted towards the QQQQ. After a large decline, traders buy the relatively safe large caps and tend to purchase the more speculative stocks later after they have profits and their fear dissipates. There were 80 new highs and 51 new lows in my universe of 4,000 stocks on Monday. More than one half (52%) of the Nasdaq 100 stocks are now above their 30 day averages and the Worden T2108 indicator is now at 52%. Many of my other indicators show internal strength in stocks. And many of the stocks I listed in yesterday’s post rose nicely. While the trend remains down, there are signs the bull may be awakening. Thirteen stocks in the current IBD 100 list hit a new high on Monday: SWN, POT, CF, WDC, NGS, FLS, MTL, NEU, GGB, MOS, CMED, RRC and KWK. It is clear that agriculture, oil and commodities remain popular.