GMI: 6; GMI-S: 75; Going long

@ 6:44 am

For the first time since February 26, the GMI is back to the maximum reading of 6.  The GMI-S is at 75; all four index ETF’s are in synch.  94-97% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes rose on Wednesday.  The end of first quarter Gmi0321 and anticipatory earnings release season rally I have been anticipating is here.  There were 245 new highs in my universe of 4,000 stocks.  57% of the Nasdaq 100 stocks have now closed above their 30 day averages and 58% of my stock universe are above their 10 week averages.  These stats are almost back to where they were before the big decline on February 27. It is time for me to be long and to hold no shorts.  The QQQQ is in its first day of a new up-trend. Stocks I have been nibbling at include HURC and NUAN. I also own X and WCG and am looking to go back into the ultra QQQQ ETF, QLD.

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GMI: 4; GMI-S: 50; Going long

@ 12:36 am

The GMI rose to 4 for the first time since February 26.  The GMI-S has also recovered to 50; one half of the four short term indicators for each of four index ETF’s (noted in table) are now positive.  Gmi0320 There were 155 new highs in my universe of 4,000 stocks, the most since February 26, just before the large 416 point drop in the Dow.  On Tuesday there were 73-87% gainers among the Nasdaq 100, S&P 500 and Dow 30 stocks.  34% of the Nasdaq 100 stocks closed above their 30 day averages, up from 13% on March 5 and March 13.  49% of the stocks in my universe have now closed above their 10 week averages. The QQQQ is in the 16th day of its current short term down-trend.  I have closed out all of my shorts and begun to go long.  Sixteen stocks in the latest IBD 100 stock list hit a new high on Tuesday:  SIMO,WFR,SSYS,DECK,CCK,PCAR,BWLD,PCP,ROCM,FDS,MIDD,

WCG,DWSN,GLP,BDC,BTJ.  I own some of these.

See my disclaimers at the bottom of yesterday’s post.

GMI: 2+; Signs of an up-turn?

@ 9:25 am

The GMI rose to 2+ and it looks like the market is on the verge of a turn.  53% (9/17) of the stocks that hit a new high 10 days ago closed higher yesterday than they did 10 days earlier, suggesting that stocks hitting new highs are holding their own.  Since this stat is based on only 17 stocks, I hesitated to call this indicator positive.  Gmi0319_2 There were 113 new highs in my universe of 4,000 stocks, the most since February 26.  The GMI-S has moved up to 25.  My IBD mutual fund index also is very close to turning positive.  We maybe getting the end of first quarter/new earnings release bounce I wrote about yesterday.  While the QQQQ remains in a down-trend, I am buying selective growth stocks, rather than shorting the index.  I am also writing covered calls for income in my IRA.

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