General Market Index (GMI) table

The GMI is at 5 (of 6) and the more sensitive GMI2 remains at 6 (of 6). I am riding this up-trend in QLD as well as some stocks. I find it most important to   let the market dictate the trend and to ignore all news and media pundits’ advice.   You can learn more about my GMI strategy and university class on technical analysis by ordering my Worden Work-Shop video from them here.

One of the best ways to buy an IPO is to wait for it to form its first base and to then buy it on the break-out to an all-time high.   That is what I did with KORS last week. IBD picked up on KORS   as it broke from its base. (When people ask me about buying FB, I always say I would become interested when/if it trades above $45.) Anyway, I had drawn a green line chart of KORS weeks ago and was ready to buy it if it broke to an all-time high.   See the monthly green line chart below.   The green line shows it all-time high. KORS came public and then doubled over the next 13 weeks.   It then consolidated for about 6 months and broke out last week.   The stock has the highest composite rating from IBD, 99th percentile, and is in my IBD 50 watch-list from August. Click on chart to enlarge.

The weekly chart above shows several black volume spikes, the footprints of funds loading up on KORS. I am keeping an eye on this one.

FRAN just came up on my Darvas Scan using TC2000.   It recently broke out of a cup and handle base.   It is also highly rated by IBD criteria. Note the weekly chart below. It is a recent IPO breaking to an all-time high, well worth researching.

All of my market indicators remain positive, reflecting the 6 (of 6) readings for the GMI and the GMI2. I am not going to discuss the GMI table today because it paints a clear picture. If I look at the market and ignore the news and world developments, it shows a market in a solid up-trend. The QQQ (NASDAQ 100 ETF) remains in an up-trend and the GMI flashed a buy signal as of   the close on July 30.   Since the close on July 30, the QQQ has advanced +5.4%, the QLD by +10.9% and the TQQQ by +16.9%.   As I have said before, the easiest way to ride an up market is to buy one of these leveraged ETF’s when the GMI flashes a buy signal.   Of course, I never have the courage to do it right away when it is most scary. I tend to slowly accumulate one of the leveraged ETF’s as the up-trend persists…….

As we all know, a major reason that the QQQ has done so well the past 8 weeks is that AAPL has shined and makes up a large proportion of the NASDAQ 100 Index.   Since July 30, AAPL has advanced +8.9%. On Friday, AAPL broke out of a green line top to an all-time high.   The weekly chart below clearly shows the current break-out and the similar looking prior one that occurred at the end of January.   That rise lasted for 16 weeks and an advance of about +49%, or over $200 per share.   There is no telling whether the current breakout will perform as well.   But if it did, this rise would last until the end of the year and add on another $300 to AAPL’s stock price.   I own some AAPL shares and some deep-in-the-money call options . (Click on chart to enlarge).