Dr. Wish

The GMI remained at +6 and the main averages are well above their main moving averages.  However, the DIA, SPY and QQQQ all closed below their 10 day averages for the first time since this up-trend began.  There were 157 new highs and only 41 new lows in my universe of 4,000 stocks.  41% of the Nasdaq 100 stocks rose Wednesday, along with 34% of the S&P 500 stocks and only 7% (2) of the Dow 30 stocks.  Still, 56% of stocks are in a short term up-trend and 64% closed above their 10 week averages.  77% of high earnings doublers closed above their 30 day averages and 13% hit a new high Wednesday.

The fact that the SPY (and QQQQ and DIA) closed below its 10 day average is a sign of short term weakness but does not constitute a reversal of trend. Note that the SPY closed below its 10 day average (dotted line) but is still well above its 30 day average (red line).  The up-trend remains intact—-for now……………

NOTE:    A NEW SECTION TO THE BOTTOM RIGHT PROVIDES LINKS TO MY FAVORITE PRIOR POSTS.  THESE INCLUDE MY STRATEGY POSTS, DEFINITIONS OF THE GMI COMPONENTS, AND MY ANALYSIS OF WHY THE TRADING TECHNIQUES OF THE GREAT NICOLAS DARVAS WORK BEST DURING BULL MARKETS AT ALL-TIME HIGHS.

How have you used this site to inform your trading?  Can you send me some experiences I can post for others  (anonymously, with your prior permission)?  Please send your pearls of Wishdom to me at: silentknight@wishingwealthblog.com. 

The GMI remains at +6 amid small changes in the market indicators.  There were 158 new highs on Tuesday in my universe of 4,000 stocks.  50% of the Nasdaq 100 stocks rose, along with 59% of the S&P 500 and 43% of the Dow 30 stocks.  Only 13% of the stocks that doubled this year (with good earnings) hit a new high on Tuesday, down from 18% on Monday.  Some leaders (AAPL, -2.2%; NURO, -9.0% and GOOG, -4.7%) were hit hard.  Tuesday was the twentieth day of the QQQQ up-trend (U-20).

NOTE:    A NEW SECTION TO THE BOTTOM RIGHT PROVIDES LINKS TO MY FAVORITE PRIOR POSTS.  THESE INCLUDE MY STRATEGY POSTS, DEFINITIONS OF THE GMI COMPONENTS, AND MY ANALYSIS OF WHY THE TRADING TECHNIQUES OF THE GREAT NICOLAS DARVAS WORK BEST DURING BULL MARKETS AT ALL-TIME HIGHS.

How have you used this site to inform your trading?  Can you send me some experiences I can post for others  (anonymously, with your prior permission)?  Please send your pearls of Wishdom to me at: silentknight@wishingwealthblog.com. 

The GMI stayed at +6 but many indicators weakened Monday.  Only 15% of the Nasdaq 100 stocks advanced, the lowest percentage since October 27.  The next day, the current rally in the QQQQ began.  23% of the S&P 500 stocks and 37% of the Dow 30 stocks also rose on Monday.  There were 184 new highs among the 4,000 stocks in my universe.  Still there were large decreases in the percentage of stocks in a short term up-trend (-4) and that closed above their ten week averages (-7).  Only 70% (-14%) of stocks that doubled in the past year are now above their 30 day averages.  I added a new indicator today, the percentage of stocks that have doubled in the past year that hit a new high.  Only 18% of the doublers hit a new high on Monday.  Thus the strongest stocks did not appear to be very strong.  Tuesday was the nineteenth day of the current QQQQ rally (U-19).

NOTE:    A NEW SECTION TO THE BOTTOM RIGHT PROVIDES LINKS TO MY FAVORITE PRIOR POSTS.  THESE INCLUDE MY STRATEGY POSTS, DEFINITIONS OF THE GMI COMPONENTS, AND MY ANALYSIS OF WHY THE TRADING TECHNIQUES OF THE GREAT NICOLAS DARVAS WORK BEST DURING BULL MARKETS AT ALL-TIME HIGHS.

How have you used this site to inform your trading?  Can you send me some experiences I can post for others  (anonymously, with your prior permission)?  Please send your pearls of Wishdom to me at: silentknight@wishingwealthblog.com.