A rise in the QQQQ on Thursday and Friday will likely turn my trend indicator up. Wednesday was the 18th day of the short term down-trend. However, there were 167 new highs in my universe of 4,000 stocks on Wednesday, the most since January 21. And 53% of the Nasdaq 100 stocks closed above their 30 day averages. With the indexes up against their key moving averages, it remains to be seen whether they will break through this week. With many growth stocks getting stronger, I suspect this market is going higher. The key is to not jump the gun, however, but to wait for confirmation.
All Posts
IBD 100 TOP TEN STOCKS GET TROUNCED IN MARKET DECLINE!
Last October, I wrote a post showing that in the market’s rise, 70% of the top 10 stocks in the IBD 100 list outperformed comparable stock indexes. Well, I repeated the analysis for the top ten stocks in the IBD 100 list published on 01/11/2010. I compared the closing price of each stock on the Friday before Monday’s list was published to the closing price yesterday, on 02/09/2010. I am a big fan in buying IBD 100 stocks in a market up-trend, but was still very surprised by these dramatic results.
More new lows than highs; T2108 and stochastic in oversold territory
For the first time since early November, there were more new lows than new highs in my universe of 4,000 stocks on Friday. Furthermore, the Worden T2108 indicator is getting near the level (below 20%) where declines sometimes end. Friday was the 11th day of the current QQQQ short term down-trend. We are either at the beginning of a major decline, or near the end of a short term correction. The best course for me is to wait for the market to tip its hand. The GMI remains at