Dr. Wish

GMI: 4; GMI-S: 44; Tough times for the IBD 100

@ 12:01 am

The GMI declined to 4.   Gmi1102_2 Only 35% of the 248 stocks that hit a new high 10 days ago closed higher on Thursday than they closed 10 days ago.   Thus, buying stocks at new highs 10 days ago has not been profitable–a major sign of market weakness.   Only 90 stocks in my universe of 4,000 stocks hit a new high on Thursday.   46-51% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes advanced. Only 36% of the stocks from Ibdperf1102 the IBD 100 list on 10/16 rose on Thursday and only 28% closed higher than they did on 10/16–this market has been rough on IBD 100 growth stocks. In addition, an IJR short term indicator turned negative, reducing the GMI-S to 44.   Thursday was the 54th day of the QQQQ up-trend.

GMI: 6; GMI-S: 50

@ 12:01 am

A pretty rough day on Wednesday,Gmi1101_2 although the GMI is still   at 6.   Only 12-23% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes advanced.   But there were still 204 new highs in my universe of 4,000 stocks.   The GMI-S fell to 50, signifying that only one half of the short term indicators for four indexes remain positive.   I sold my weakest holding on Wednesday and will lighten up if this market continues to weaken.   It is not unusual to see weakness at the beginning of the month after most earnings have come out.   I will try to hold on for an expected end of year rally, but I will not fight the GMI…..

GMI: 6; Riding QLD

@ 12:01 am

The GMI is still 6.   Only 42% of the Nasdaq 100 stocks advanced on Tuesday, along with 45% of the S&P 500 stocks and 37% of the Dow 30 stocks.   Still, there were 231 new highs and only 20 new lows in my universe of 4,000 stocks.   Gmi1031_1 Only 64% of the Nasdaq 100 stocks closed above their 30 day average, down from 88% on 10/16.   Only 40% of the IBD 100 stocks from 10/16 advanced on Tuesday and only 9 hit a new high–COGO,CELG,BLKB,AXR, JLL, HRT, BLUD, NVEC,

IAAC.   Tuesday was the 52nd day of the current QQQQ up-trend.   During that time the QQQQ has risen 10.4% but the ETF that approximates twice its movement advanced 19.8%.   Once the up-trend was established, it became very comfortable for me to just ride the QLD.