Dr. Wish

The GMI remained at +4.  There were only 63 new highs Wednesday and an equal number of new lows.  Only 31% of the stocks that hit a new high ten days ago closed higher than they did ten days ago. Most of my indicators declined.  39%  of the Nasdaq 100 stocks rose along with 54% of the S&P 500 stocks and 60% of the Dow 30 stocks.  Only 4% of the stocks that doubled the past year hit a new high and only 52% of the stocks in my universe of 4,000 closed above their 10 week averages.  Only 32% of stocks remain in a short term up trend. The percentage of stocks within 5% of a new high fell to 22%.  Wednesday was the second day of the QQQQ short term down trend (D-2)………..

Seven of the 63 new lows on Wednesday were housing stocks and seven were radio or TV broadcasting stocks.  Maybe these sectors are a good place to search for shorts.

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

The GMI fell to +4 as my market indicators seriously weakened.  There were 49 yearly highs and 65 new lows in my universe of 4,000 stocks on Tuesday.  When more stocks hit new lows than highs, it is often a very ominous sign for the market.  Less than one half of the stocks that hit a new high 10 days ago closed higher on Tuesday than they did 10 days earlier. Only 4% of the stocks that doubled in the past year hit a new high on Tuesday.  Only 37% of stocks remain in a short term up trend, and only 18% are in a sustained rise.  Only 54% of stocks closed above their 10 week averages.  The GMI-S fell to 50, with the IJR index(small cap) indicators showing the largest weakness.  Only one of the four short term indicators of the IJR remain positive. Only one half of the indicators for the SPY, DIA and QQQQ remain positive.  Tuesday was day one (D-1) of the new QQQQ down trend.    The continued weakness in the two market leaders (GOOG and AAPL) has been a good predictor of market weakness.  I am becoming defensive and raising cash and/or going short, focusing on the housing and interest rate related stocks….

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

The GMI remains at +6 but the Daily QQQQ Index is close to turning negative again.  There were only 170 new highs in my universe of 4,000 stocks and 54 new lows.  The last time we had more new lows was on December 21.  Only 44% of stocks remain in a short term up trend.  Only 20% of the Nasda 100 stocks rose on Monday, along with 22% of the S&P 500 stocks and 27% of the Dow 30 stocks.  This was the third day in the QQQQ short term up trend (U-3).  One more down day will change the trend to down………….

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