The GMI remains at 4 (of 6) and the GMI-R at 7 (of 10). There were 51 new highs and 84 new lows in my universe of 4,000 stocks on Thursday. My GMI and GMI-R will rise when there are at least 100 new highs and more new highs than lows in a day. But the QQQQ short term up-trend remains intact, having completed its 23rd day. I am confident enough of the short term trend to be buying stocks and accumulating QLD in my IRA. Note, however, that I am careful to stress that the short term trend is up. My Weekly QQQQ Index remains negative, indicating that the longer term trend remains down. So, this is a trade-able rally in an overall down-trend. If the Weekly QQQQ Index turns positive, the GMI will turn 6 and I will move my university pension funds from a money market fund to a growth mutual fund. I trade my university pension account much less often because there are limits to the number of trades I can make each year. I therefore wait for the longer term up-trend to assert itself before I will transfer from cash. I have no such restrictions in my IRA, where I can move in and out of stocks quickly if my short term indicators should reverse. Right now I am comfortable riding QLD and a few stocks, some of which I have written calls on. I also own DZZ, the new ultra short ETF on gold.
Dr. Wish
GMI: 4; GMI-R: 7; 22nd day of QQQQ short term up-trend; ITRI
There were 42 new highs and 114 new lows in my universe of 4,000 stocks on Wednesday. The low number of new highs caused the GMI to decline to 4 (of 6) and the GMI-R to 7 (of 10). Still, 71% of the Nasdaq 100 stocks closed above their 30 day averages. ITRI, a Judy’s Pick, rose 5% to $105.21. I continue to accumulate QLD and to write covered calls.
GMI: 5; GMI-R: 8; 21st day of QQQQ short term up-trend
The GMI remains at 5 (of 6) but the GMI-R fell one to 8 (of 10). This is because there were more new lows than highs (131 vs. 111) in my universe of 4,000 stocks on Tuesday. Tuesday was the 21st day in the current QQQQ short term up-trend. I continue to hold QLD and to write calls on IBD 100 stocks. CPST, a Judy’s Pick, continues to out-perform the market.