The GMI fell to 5, and the GMI-R is now at 70%. There were 351 new lows and 133 new highs in my universe of 4,000 stocks on Friday. Meanwhile, the Daily SPY Index has turned negative even as the QQQQ remains in the 46th day of its current short term up-trend. 10% of the Nasdaq 100 stocks rose, somewhat better than the 3% of the S&P 500 and the Dow 30 stocks. But the Worden T2108 indicator is now 42%, the lowest level since it topped at 82% on October 5th. This pendulum of the NYSE stocks is now heading towards bearish territory and does not typically bottom out until it declines to below 25%. Nine stocks from the IBD 100 list published on October 15 hit new highs on Friday: FMCN,BIDU,CTRP,CLB,ABB,TEF,HDB,HMSY,SYNA. But when I look at the industries represented in the new low list, I am struck by the major weakness in housing, bank and apparel stocks. How long can the techs buck these trends? I am still holding QLD, but will sell out if the GMI falls below 3.
Dr. Wish
GMI: 6; GMI-R: 90%; Split market
The GMI remains at 6 and the GMI-R fell one, to 9 (90%) because there were more new lows than highs in my universe of 4,000 stocks on Thursday. Remember, the GMI tracks the Nasdaq 100 stocks most closely. We have had a miserable performance in the Dow 30 S&P 500 and SmallCap stocks and still have the GMI remain strong because the Nasdaq 100 techs stocks are outperforming these other stocks. How long this schizophrenic, split personality of a market can last is anyone’s guess. For now, the Nasdaq 100 tech stocks remain stronger and are in the 45th day of their short term up-trend. So, I retain the QLD and my covered call positions…….
GMI: 6; GMI-R: 10; 17 IBD100 stocks at new highs
The GMI is at the maximum of 6 and the GMI-R is at 100%. There were 326 new highs and 85 new lows in my universe of 4,000 stocks on Wednesday. 83%-93% of the stocks in the Nasdaq 100, S&P500 and Dow 30 indexes advanced. Seventeen of the stocks on the IBD100 list from October 15 hit a new high: MA,HDB,ATW,CMG,POT,RIO,SYNA,SID,SDA,FMCN,GOOG, AAPL,AIRM,MBT,ABB,TEF, and PAY. Wednesday was the 44th day of the current QQQQ short term up-trend. I am mainly in the QLD and holding stocks on which I have written calls.