Dr. Wish

GMI: +2; Holding cash

@ 7:50 am

The GMI is +2 and we are in the second day (D-2) of the new QQQQ down-trend. I will wait to commit funds Gmi0707 until after earnings season.  Since 5/15, only 27% of the IBD 100 stocks listed on that date and 34% of my universe of nearly 4,000 stocks have advanced at all.  With odds like these I should only be short or in cash.  My scan of the market yielded 16 rocket stocks and 384 submarines.  Only 2 IBD 100 stocks (PMTI, CME) from the list on 5/15 hit a new high on Friday.  It would be insane to chase growth stocks and anticipate new highs in this market.

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

GMI:+2; D-1?; Staying in cash

@ 12:01 am

The GMI fell to +2, with the initiation of a possible new short term down trend in the QQQQ.  Gmi0706 48% of the Nasdaq 100 stocks rose on Thursday, along with 54% of the S&P 500 and 63% of the Dow 30 stocks. However, there were only 80 new highs and 49 new lows in my universe of nearly 4,000 stocks.  39% of the stocks in my universe and 78% of the IBD 100 stock list on 5/15 are in a bullish stage 2 up trend.  However, 83% of my universe of stocks (93% of the IBD 100 list) closed above their MACD signal line, suggesting an upward trend in most stocks. Only 55% of the IBD 100 stocks from 5/15 advanced on Thursday compared with 58% of my universe of stocks.  Only four of the IBD 100 stocks from the list on 5/15 hit a new high:  EZPW, HOC, HANS and PMTI. Only 31 of the IBD 100 stocks from 5/15 closed higher Thursday than they did on 5/15.  The market has not yet tipped its hand.  I think this is a time for staying in cash.

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