GMI: 3; GMI-R: 6; Split market

@ 10:07 pm

The GMI fell to 3 (of 6) and the GMI-R is at 6 (of 10).  The QQQQ continues to outperform the Dow and S&P500 stocks.  This is mainly because the Nasdaq 100 stocks represented by the QQQQ do not contain the financial stocks that are imploding and weakening these other indexes.  There were 81 new highs and 85 new lows in my universe of 4,000 stocks on Monday.  It remains to be seen whether the weakness in these other stocks will eventually spread to the tech stocks.  This is the time to have close stops and to be ready to go to cash and/or short if the GMI breaks down further.

GMI: 5; GMI-R: 8; 48th day of QQQQ up-trend; 19 IBD100 stocks at new highs

@ 8:00 am

The GMI (General Market Index is now at 5 (of 6) and the GMI-R (GMI, revised) is now at 8 (of 10). (Click on table to enlarge.)GMI0530

There were 86 new highs and 41 new lows in my universe of 4,000 stocks on Friday.  The QQQQ has been in an up-trend for 48 days.  Over that time, the QQQQ has risen 10.2% and the ultra long QQQQ ETF, QLD, has advanced 18.9%.  So if one just rode the trend in the QLD, one could have had a very nice portfolio performance, indeed!  I meet so many traders who think they must get in and out of the market and trade every dip.  But as Jesse Livermore wrote over a half century ago, the way to make big money in the market is to determine the change in trend and to ride it until it ends…..

The IBD100 stocks have been doing well lately. The list of stocks on the IBD100 list published on April 7 provides a good example.  In about two months, 67% have advanced, 45% by more than 12% and 32% are up more than 20%.  In fact the top 10 gainers are up 32-94%.  The leader is CLR (+94%), followed by TTES and GHM (+40%) and ISYS (+39%).  Today's new IBD100 list has a lot of promising stocks on it, including 19 which hit a new high on Friday:  ISYS,KSU,WDC,ANSS,SOHU,CLR,NDSN,SQM,FLS,GLF,WFT,
CLHB,HIL,MA,GDI,WTI,DR,GMXR,AXYS.  I bet some of this summer's big winners are on this list…..