GMI: 4; GMI-S: 31; GRMN and MR strong

@ 12:01 am

The Nasdaq stocks really strengthened on Wednesday and that index is in its 60th day of an up-trend.  Gmi0627 There were 80 new highs but 92 new lows in my universe of 4,000 stocks.  The Nasdaq 100 index is much stronger than the Dow and S&P 500 indexes.  The GMI is back to a definite 4.  My covered call positions are holding up, with the exception of the IOC debacle I wrote about yesterday.  I bought back some of my IOC calls and sold the shares at a large loss.  I probably will close out all of the shares and calls tomorrow.

GRMN continues to climb and I own some shares of this company.  I think we are getting a rally based on anticipated good earnings to be released on August 1. I also own some MR, which is showing major strength.

See my disclaimers on the previous post.

GMI: 4? and on the edge; GMI-S: 13; IOC—YIKES!!!

@ 12:01 am

The GMI is down to 4 and could fall to 2 tomorrow with another down day.  The GMI-S is down to 13.  Gmi0626 There were only 56 new highs and 84 new lows in my universe of 4,000 stocks.  Two indicators are too close to call (?), so I left them positive.  Tuesday was the 59th day of the current QQQQ up-trend and it would not surprise me to see a new down-trend.  The QQQQ has closed above its 10 week average for 12 weeks.  The SPY is now below its 10 week average.  The Worden T2108 indicator shows 34% of stocks above their 40 day average, far from the 80% peak in April, but not low enough to where declines typically end, around 25%.  So, this decline could have  more to go…..

I was bloodied by IOC on Tuesday.  The stock fell 30% and evaporated many of the gains I had achieved by selling high premium calls on it the past two months.  This was an important lesson about not being too greedy on such bets….

I still suspect we will have an earnings rally in July.  The put/call ratio was over 1 on Tuesday, a bullish sign because options players are betting on a decline. However, if the GMI continues to weaken, I will go to cash and purchase QID or SDS to make money  on the short side.

Blogdisclaimer

Gmi-5; GMI-S, 19; markets weakening; GOOG, GRMN, IOC

@ 12:01 am

The GMI fell to 5 on Monday, with only 94 new highs in my universe of 4,000 stocks. The GMI-S fell to 19, with few short term indicators remaining positive. I still think that this decline is setting up a rally when earnings come out in July.  The major indexes are still above their 10 week averages.  So, while the short term may look weak, the longer term up-trend is still intact.  I am holding covered call positions and a lot of cash.  GOOG and GRMN still look strong.  And then there is IOC which is giving me 10% premiums on my covered calls.  A lot of people must be betting that their natural gas find will pan out.  I am very pleased to sell these persons calls on my shares at huge premiums.

I will let you know if my indicators weaken.

Note my disclaimers on my prior posts.