Dr. Wish

GMI:5; GMI-S: 100; QLD at twice the speed of QQQQ

@ 12:01 am

The GMI is still at 5 and the GMI-S is 100, indicating that all of my short term indicators for four primary stock index ETF’s (SPY, DIA, QQQQ, IJR) are positive.  53% of the Nasdaq 100 stocks advanced on Tuesday, along with 63% of the S&P 500 and 67% of the Dow 30 stocks.  Gmi0829 There were 183 new yearly highs in my universe of 4,000 stocks and only 21 new lows.  59% of stocks are in an up-trend, up from 15% on July 14.  Tuesday was the eighth day in the current QQQQ up-trend.

Did you know there are relatively new ETF’s that allow one to bet on twice the percentage move  of major indexes and that these ProShares ETF’s  just surpassed a million share day?  If we think the QQQQ train is moving up, we can jump on QLD and travel at twice the speed of the index.  But remember, QLD can move twice as fast in both directions……..

Please send your comments to:  silentknight@wishingwealthblog.com.

GMI: 5; Waiting for a +6

@ 12:01 am

The GMI remains at +5 as 150 stocks in my universe hit a new high on Monday. 85% of the Nasdaq 100 stocks rose along with 78% of the S&P 500 stocks and 83% of the Dow 30 stocks.  Gmi0828 Monday was the seventh day of the current QQQQ up-trend.  The GMI-S is back to 94 and the GMI-L is at 63.  It looks like we are getting the routine rise in the last week of the month.  I remain long a few stocks and will wait to see whether this up-trend gets stronger.  There is plenty of time to jump on this train once the GMI turns +6.

Please send your comments to:  silentknight@wishingwealthblog.com.

GMI: 4; On the brink

@ 12:01 am

The GMI returned to +4.  there were only 64 new highs and 49 new lows in my universe of 4,000 stocks.  52% of the Nasdaq 100 stocks rose on Friday, along with 40% of the S&P 500 and Dow 30 stocks.  The GMI-L fell to 56 and the GMI-S to 88, indicating some weakening in the long term and short term market indicators.  Gmi0825 This market is too close to call, although it remains in a short term up-trend.  Friday was the sixth day in the current QQQQ up-trend (U-6).  This was the second week that the QQQQ closed above its 10 week average, a nice sign of strength.  19% of my universe of stocks closed within 5% of their yearly high, while only 6% closed within 5% of a new low.  The market has been tough on IBD 100 growth stocks.  Only 19% of the IBD 100 list on 5/15 closed higher on Friday than they did on 5/15, compared with 43% of my universe of stocks since the same date.  63% of the IBD 100 stocks on 8/14 closed higher on Friday than they closed on 8/14.  Only 3 of the IBD 100 stocks from 8/14 hit a new high on Friday (NVEC, NGPS and WCG).

This  market remains in a short term up-trend.  But the GMI is close to turning down, with the IBD mutual fund index virtually on top of its 50 day average. With the end of the month coming we may get a follow through of the rally this week.  But we are also approaching October, a month where many bottoms have occurred.  I am holding onto my longs and am ready to dump them if this market falters.

Please send your comments to:  silentknight@wishingwealthblog.com.