There were 14 new highs and 409 new lows in my universe of 4,000 stocks on Tuesday. The T2108 indicator bounced back to 11%. Time will tell whether this bounce will lead to a real turn. I sold out my QID and began to make pilot buys in some of the IBD New America stocks. Each day the IBD New America section presents a company that they think represents a promising visionary business. I have created a watchlist of all New America stocks the past few months that I will monitor for break-outs. The following nine New America stocks closed Tuesday within 5% of their 52 week high and may be worth watching: NUVA,BABY,ACL,BMI,GHM,FLIR,TRLG,CELG,FCN. I own some of these.
Barron’s cover has bear on it—tremendous contrary signal of bottom
I just saw their latest issue with a bear on it. Over the years, when major magazines publish a bull or bear on the cover it usually is a sign that the market is going to go in the opposite direction. When Barron’s editors are so sure of the market that they place a bear on the cover, I think it is time to look for a bottom.
GMI: 0; GMI-R: 0; Worden T2108: 8%, rally coming?
The GMI and GMI-R remain at zero. There were 12 new highs and 726 new lows in my universe of 4,000 stocks on Monday. The Worden T2108 indicator fell to 8%, deep in bottom territory (see my prior post). So many media pundits are proclaiming a bear market that at least a bounce is likely. Monday was the 18th day of the current QQQQ down-trend.