Dr. Wish

The markets strengthened on Thursday and the GMI remained at +6.  There were 341 new highs in my universe of 4,000 stocks.  62% of the stocks that hit new highs ten days ago closed higher on Thursday than they did ten days ago.  77% of the Nasdaq 100 stocks advanced, along with 64% of the S&P 500 stocks and 53% of the Dow 30 stocks.  Thursday was the tenth day of the QQQQ up trend (U-10).

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The market held on for another day, with the GMI still at +6.  But it was a weak market.  There were only 128 new 52 week highs in my universe of 4,000 stocks, the lowest number since December 30.  And only 55% of the stocks that hit a new high 10 days ago closed higher on Wednesday than they did 10 days before.  Only 47% of the Nasdaq 100 stocks rose, along with 45% of the S&P 500 stocks and 23% of the Dow 30 stocks.  Only 11% of the stocks that doubled in the past year hit a new high on Wednesday.  Wednesday was the ninth day in the current QQQQ up trend (U-9).

The weakness in Japan and in the U.S. market leaders, including GOOG (-4.75%), YHOO (-12.29%) and AAPL (down in the extended session in spite of good earnings) makes me much more cautious about staying long in this market.

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

While the GMI remained at +6 on Tuesday, the market action was mixed.  Only 30% of the Nasdaq 100 stocks, 31% of the S&P 500 stocks and 17% of the Dow 30 stocks advanced. But there were 174 new yearly highs in my universe of 4,000 stocks, 20 more than on last Friday. And while 4% of my universe of stocks hit a new high, 20% of the stocks that have doubled in the past year hit a new high on Tuesday.  Most of these new high "doublers" were energy related stocks that had been so strong in 2005.  Thus, the strong appear to be getting stronger, even in a declining market.  Tuesday was the eighth day of the QQQQ up trend (U-8).

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