General Market Index (GMI) table

While the tech stocks have been hit hard recently, financial stocks have been strong. This weekly chart of GS shows that it had what appears to be a high volume cup and handle break-out last week. If the market reacts well to the new tax law, GS could really move up. Note that GS is approaching its green line historic peak of 250.70 reached in 2007.

The GMI remains at 6 (of 6) but the more sensitive GMI-2, which tracks nonfinancial tech stocks, is weaker, at 4 (of 8). I am tempted to jump on some of the stronger financial stocks but fear a major negative political event might take this market down. I am a chicken and always have one foot out the door. However, we could see end of quarter strength in the old leaders at the end of the month.

If you take a look at the GLB tracker table on this page you will see that stocks that closed above their green line (drawn at all time high not surpassed for at least 3 months) sometimes perform very well. I have no idea what percentage of GLB stocks continue to rise. If a stock closes back below its green line I exit immediately. Anyway, below are 18 stocks that had a GLB in the past 2-3 weeks that also had last quarterly earnings up at least +25%. I copied the last quarter’s earnings increase, taken from TC2000,  in the second column. These are stocks to watch (I own a few).

The GMI remains at 6 (of 6) and on day 43 (U-43) of the QQQ short term up-trend.

On Friday, GLD appeared to have had an above average volume move up,  closing above its 30 and 50 day averages. Green dots show reversals in daily 10.4 stochastics and 3 recent bounces off of a similar area of support. What is strength in gold telling us?

Perhaps the strength in GLD is reflecting resumption of the down-trend in the dollar that began in January. A weak dollar could be an ominous signal for the US economy.

The GMI remains on a Green signal.