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My market indicators weakened Thursday, but remained above Tuesday’s lows.   This has been a good time to be off the roller-coaster. Are we at the point when one stock (GOOG) determines the fate of the market?   Market insanity prevails.

The GMI is still at +1. One third of the QQQQ stocks rose on Thursday, along with 17% of the S&P 500 and Dow 30 stocks.   There were 66 new yearly highs and 135 new lows in my universe of 4,000 stocks.   Thursday was day 12 (D-12) in the current QQQQ down-trend.   Fasten your seat-belts Friday.

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.