Nicolas Darvas

The GMI is still firmly at +6, although the QQQQ stocks were a little less likely to rise Tuesday.  Only 51% of the Nasdaq 100 stocks advanced, compared with 64% of the S&P 500 stocks and 67% of the Dow 30 stocks.  Still, 57% of the 4,000 stocks I follow are in a short term up-trend and 65% are now above their 10 week averages.  There were 350 new highs and 80% of the 94 stocks that hit a new high ten days ago closed higher Tuesday than they closed ten days earlier.  Tuesday was the sixteenth day of the QQQQ up-trend (U-16).  26% of stocks are within 5% of their 52 week highs.  Enjoy this up-trend!

I wrote a piece about I-bonds several months ago, suggesting that these bonds were a good way to grow savings with protection from inflation.  Now it appears there have been some changes in the way the base for these bonds is calculated that can make them inferior investments.  Check out this recent article by Chuck Jaffe.

NOTE:    A NEW SECTION TO THE BOTTOM RIGHT PROVIDES LINKS TO MY FAVORITE PRIOR POSTS.  THESE INCLUDE MY STRATEGY POSTS, DEFINITIONS OF THE GMI COMPONENTS, AND MY ANALYSIS OF WHY THE TRADING TECHNIQUES OF THE GREAT NICOLAS DARVAS WORK BEST DURING BULL MARKETS AT ALL-TIME HIGHS.

How have you used this site to inform your trading?  Can you send me some experiences I can post for others  (anonymously, with your prior permission)?  Please send your pearls of Wishdom to me at: silentknight@wishingwealthblog.com. 

Nicolas Darvas attracts the fascination of many traders.  Some of my readers have asked for more information about this amazing dancer-trader.  While I know he is deceased, the best source on Darvas is the article (available for a small fee from the TIME magazine archive) that made him famous–Pas de Dough, May 25, 1959.  If anyone else knows a better source about Darvas, please send it in.  Also, check out my piece on his little known and rare final book, cited in my favorite posts link on Darvas, to the lower right.

The GMI closed the week at +6.  There were 323 new highs on Friday, the highest number since October 3.  Between 62-64% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes rose on Friday.  23% of the 4,000 stocks in my universe are now within 5% of a 52 week high, compared to 9% near a new low.  Friday was the fourteenth day (U-14) of the QQQQ up-trend.  Since this up-trend began on November 1, the QQQQ has risen +6.6%.  During this period, 81% of the 100 stocks in the Nasdaq 100 have advanced.  This again  shows that if we traded with the up-trend in the QQQQ average, we had an 81% chance of having a profit.  The top ten gainers during this period are:  LVLT (+40.8%), MRVL (+25%), AMZN (+18.9%); FAST (+17.7%), ATYT (+16.9%), QCOM (+16.3%), WYNN (+16.1%), INTU (+15.9%)MLNM (+15.4%) and GILD (+15.3%).  I  hope you owned some of these.  33 of the Nasdaq 100 stocks have gained 10% or more since this up-trend began.

The WPM shows improvement in all indexes, but the S&P small cap.  All five indexes are above their 30 day and 30 week averages.  But 82% or more of the component stocks in all these indexes but the small cap are above their 30 day averages.  In contrast, only 73% of small cap stocks are in a short term up-trend.  The small cap stocks are also least likely to be above their 30 week averages (61%).  Thus, while most stocks are participating in this up-trend, the small caps are laggards, for now.

Among the stocks that hit a new high Friday, have strong recent quarterly earnings and are up at least 60% in the past year are: GOOG, PLLL, CUTR, UBB, ISRG, IRIS, MDR, HUBG, MRVL, HOLX, RES, GHL, SUPX, CX, KYPH, CDIS,GOL and CERN.  (I own some of these.)  These stocks are prime rockets for further research and consideration.

How have you used this site to inform your trading?  Can you send me some experiences I can post for others  (anonymously, with your prior permission)?  Please send your pearls of Wishdom to me at: silentknight@wishingwealthblog.com. 

I corrected yesterday’s post so the GMI changes over time chart will now enlarge when clicked on. "My favorite posts" links at the bottom right now work but you will have to scroll to the correct date noted.  I am repeating yesterday’s note below.

NOTE:    A NEW SECTION TO THE BOTTOM RIGHT PROVIDES LINKS TO MY FAVORITE PRIOR POSTS.  THESE INCLUDE MY STRATEGY POSTS, DEFINITIONS OF THE GMI COMPONENTS, AND MY ANALYSIS OF WHY THE TRADING TECHNIQUES OF THE GREAT NICOLAS DARVAS WORK BEST DURING BULL MARKETS AT ALL-TIME HIGHS.

The GMI remains at +6.  There were 126 successful 10 day new highs on Monday and there were 204 new highs and 62 new lows among the 4,000 stocks in my universe.  Only 43% of the Nasdaq 100 stocks advanced, along with 41% of the S&P 500 stocks and 53% of the Dow 30 stocks.  There were few changes in the market internals.  Monday was the tenth day (U-10) in the QQQQ up-trend.

Stocks with quarterly earnings up 100%+ and hitting a new high on Monday include: TIE, HSVLY, GOOG, LMIA, LMS, NWRE, CUTR, TRAD, HANS, ISRG, HUBG, SAFT, SUPX, and CX.  I own some of these.  Check them out.

Please send me your feedback at: silentknight@wishingwealthblog.com.