Dr. Wish

My market indicators showed a lot of improvement today, but the GMI is still at +1 and the indexes are still well below their moving averages.  Between 80-85% of the Nasdaq 100, S&P 500 and Dow 30 stocks advanced on Wednesday, the most since September 6.  There were 51 yearly highs, the most since October 4 (300 highs), but there were 219 new lows.  The percentage of stocks in a short term up-trend rose 2, to 10% and the percentage above their 10 week averages rose 10, to 30%.  40% of the Nasdaq 100 stocks are above their 30 day averages, up from 24% on Wednesday.  Almost as many stocks are now within 5% of their yearly highs as lows (11% vs 13%). 

These signs of strength are promising, but not enough to get me to move my cash into stocks.  The GMI needs to move up before I am willing to wade back into this market.

Please send me your feedback at: silentknight@wishingwealthblog.com.

The GMI remains at +1, and there were only minor changes in my indicators on Tuesday.  Between 20-24% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes advanced.  There were 40 new highs and 141 new lows in my universe of 4,000 stocks.  There were only 31 successful 10 day new highs-stocks that hit a new high 10 days ago and that closed higher Tuesday than 10 days earlier.  Only 8% of stocks are in short term up-trends.  16% of stocks are within 5% of hitting new lows, compared to 7% that are near their new highs.  Tuesday was the tenth day (D-10) in the QQQQ decline.  I am 100% in cash.

Please send me your feedback at: silentknight@wishingwealthblog.com.

The GMI rose to one Monday, as the Weekly QQQQ index turned positive, even as the short term daily QQQQ indicator remained negative.  The number of 52 week highs rose to 40, although there were more new lows (95).  Between 53-62% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes advanced on Monday.  Only 8% of the 4,000 stocks in my universe are in a short term up-trend, down from 50%+ in mid-September.  In contrast, strength is evident in the 194 stocks that have doubled in the past year, with 44% now above their 30 day averages, up from 25% last Thursday.  It appears that the stocks rebounding now are those that have been most strong over the past year.  The top 11 of these stocks, which also had last quarterly earnings up at least 50% are:  NTRI, PRLS, KNDL, TIE, MAIN, NDAQ, NGS, GMXR, ASF, ARD, KNOT.

Please send me your feedback at: silentknight@wishingwealthblog.com.