Dr. Wish

GMI: 4; GMI-R: 8; CPST rocks; ITRI-another Judy’s pick; RSS feeds

@ 12:13 am

The GMI is at 4 (of 6) and the GMI-R is 8 (of 10).  There were 63 new highs and 31 new lows in my universe of 4,000 stocks on Wednesday.  Wednesday was the 7th day of the new QQQQ up-trend.  With my general market indicators in positive territory it is time for me to accumulate stocks again.  I am buying QLD and selling covered calls on IBD100 growth stocks again.  I am getting 4-5% premiums for calls that have only 12 days to expiration….

Meanwhile, CPST, one of Judy’s picks, keeps hitting new highs on heavy volume and is up almost 14% since I wrote about it on March 28, at $2.09. CPST makes microturbines and appears to be  pulling in contracts from around the world.  As a rule, I do not buy cheap stocks, but I made an exception for CPST, based on its great chart and Judy’s advice. Judy had bought it around $1 per share.  Another Judy’s pick that showed some life on Wednesday is ITRI, which makes smart meters.  I automatically purchased some ITRI today when my buy stop was triggered around $97. By placing a good-til-cancelled buy stop at the level I think is indicative of a break-out, I can buy promising stocks without having to watch the market.  One does not need to be glued to a monitor to catch stocks breaking out of bases…

To my honors students taking part in the virtual trading competition–it is time to close out your shorts and go long. Pyramid up on margin as long as the QQQQ up-trend remains intact.

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Notes from Mr. Wish (Dr. Wish’s  IT Guru son):
– RSS Feeds now display 10 articles as opposed to just two.  Feel free to add them to your blogs and web sites at will.  No permission needed.  All publicity is good publicity.
– RSS Feeds are now available through feedburner at this address: http://feeds.feedburner.com/typepad/wishingwealth  — If you don’t know what this is, you dont need to know what it is
– Finally, my blog is available on YOUR iGoogle home page.  There is a link about half way down, under "Recent Posts" where you can instantly get updates on my latest posts right to your iGoogle page.  If you don’t have an iGoogle page you SHOULD.  get one here: http://www.google.com/ig
– hope you like the new design = )

GMI: 3; GMI-R: 7; buying QLD; Bear Stearns gave plenty of advance warning of its collapse

@ 12:01 am

The GMI rose to 3 (of 6) and the GMI-R to 7 (of 10).  There were 39 new highs and 21 new lows in my universe of 4,000 stocks on Tuesday.  70% of the Nasdaq 100 stocks have now closed above their 30 day averages and 94% of my 16 short term indicators for four index ETF’s (DIA, QQQQ, SPY, IJR) are now positive.  The QQQQ is now in its sixth day of its short term up-trend.  I have closed out my shorts and am accumulating QLD , an ultra ETF that aims to move twice as much as the QQQQ (Nasdaq 100 index)…

I am  incredulous of the media pundits who claim that the recent plunge in Bear Stearn’s stock to $2.00 was sudden or unexpected.  Bsc
This weekly chart of BSC (click on to enlarge) shows that the stock peaked in January, 2007 and declined below its 30 week average (red line) in May, 2007, a key danger signal.  A few weeks later the 10 week average (dotted line) broke below the 30 week average.  Over the next five months the stock was in a sustained down-trend.  In the week following the last week displayed in this chart the stock collapsed from around $60 to below $10.  The ignorant media focused only on that last week of a selling climax, and missed the point that the collapse was preceded by a long six month down-trend during which anyone who follows technical analysis should have exited BSC or shorted it.  (Cramer hates charts and told his audience not to exit the stock.) A story claiming sudden unexpected selling by nefarious hedge funds must sell more papers……………. 

GMI: 1; GMI-R: 3; 5th day of QQQQ short term up-trend; short and long positions

@ 12:01 am

The GMI remains at 1 and the GMI-R at 3.  There were 15 new highs and 83 new lows in my universe of 4,000 stocks on Friday.  RICK failed to hold its break-out.  The QQQQ completed the 5th day of its current short term up-trend. With mutual fund window dressing over with the end of the first quarter, it will be critical to see whether the QQQQ can hold its 30 day average on Tuesday.    I remain manily in cash with a small long position hedged by a small short position.