Market in rally mode

GMI4/6
GMI-R8/10
T210887%

The QQQQ remains in a nice up-trend and I am long stocks.   We are in the period when few pundits believe the rally is justified.   That is okay with me.   I just ride the train as it goes in the right direction,   until it turns.   Two stocks I have been riding, PEGA and SXCI, have had nice break-outs. However, I still prefer to concentrate in the ultra QQQQ ETF, QLD.  

Read moreMarket in rally mode

Up-trend in place; Time to be long; 9 IBD100 stocks at new highs

GMI5/6
GMI-R9/10
T210888%

The market up-trend is in place and I am almost 100% invested on the long side in my trading IRA.   I am also largely invested in mutual funds in   my university pension. This is the time to ride the train and not to fight it.   No one knows when the up-trend will end.   The idea is to ride it and have sufficient stop losses in place to exit if the trend should convincingly reverse. The GMI is at 5 of 6, having been at 6 at Thursday’s close.   There were less than 100 new highs (74) in my universe of 4,000 stocks on Friday, bringing it down to 5.   I suspect we will be back to 6 this week.   Meanwhile, 84% of the Nasdaq 100 stocks had their MACD close above its signal line, a nice show of strength.   The Worden T2108 Indicator is at 88%, near the top of the range it typically reaches.   But it can stay above 80% for months.

Read moreUp-trend in place; Time to be long; 9 IBD100 stocks at new highs

Up-trend continues; But T2108 near peak; 25 stocks at all-time highs

GMI4/6
GMI-R8/10
T210885%

The up-trend continues but the T2108 is at 85%, about as high as it gets.   That does not mean we will get a decline, for it can stay above 80% for weeks.   I went to an investor’s group meeting this weekend and was amazed to find that many sophisticated investors are resisting this rally.   About two thirds expected an imminent market decline.   I am incredulous that people would rather fight a trend than ride it.   If one puts in stop losses to control risk, why not ride the market until it falters.   No one can consistently know when a trend will end.   Stop guessing! Meanwhile, the GMI

Read moreUp-trend continues; But T2108 near peak; 25 stocks at all-time highs

Up-trend is here; 50% invested; some rocket stocks

GMI4/6
GMI-R8/10
T210870%

To be successful in the market, I have to block out all other opinions and look at what the market is telling me.   The market successfully tested support last week and the 30 week averages for the SPY, QQQQ and DIA are turning up.   This is a classic Weinstein Stage 2 pattern.   I get out of the market when the 30 week averages turn down and back in when they turn up.   I know this seems simplistic and naive, BUT IT WORKS!!   It keeps me on the right side of the market’s primary   trend.   And 70-80% of stocks follow the general market’s trend–end of story.   The GMI is in an up-trend mode, going between 4 and 5.

Read moreUp-trend is here; 50% invested; some rocket stocks

Short term down-trend continues, mainly in cash; New edition of O’Neil classic

GMI1/6
GMI-R1/10
T210829%

There were 32 new lows on Friday in my universe of 4,000 stocks, the largest number since March 12th!   There were only 9 new highs.   Friday was the 5th day of the new QQQQ short term down-trend.   Why try to fight the down-trend when one can sit calmly on the sidelines?   The major positive I still see is that the longer term   averages I follow are still curving up.   If they should be violated on the down side, I will even go to cash again in my university pension.   I remain only 15% invested there.   Meanwhile, The GMI

Read moreShort term down-trend continues, mainly in cash; New edition of O’Neil classic