GMI: +5; QQQQ continues decline

@ 12:01 am

The GMI remains at +5 amid weakness in the market averages.  Gmi0223 Only 37% of the Nasdaq 100 stocks advanced on Thursday, along with 35% of the S&P 500 stocks and 13% (4) of the Dow 30 stocks.  Still, there were 323 new 52 week highs in my universe of 4,000 stocks and the percentage of stocks in a short term up trend rose to 45%.  The QQQQ is in the fourteenth day of the short term decline (D-14). So many of the Nasdaq big name stocks are getting hit:  ESRX (-5.65%), RIMM (-4.94%), SNDK, (-2.58%), Dell (-2.25%) and AMZN (-2.12%).   Since January 11, the QQQQ has declined 4.77% and 61% of its component stocks have declined.  The biggest losers, falling 19% or more include:  JNPR, GOOG, YHOO, EXPE, INTC, ATVI, SNDK, XMSR and ISRG.  As long as the QQQQ fails to join the up trend in the SPY and DIA, there will be many more rude surprises in the tech stocks.

Please send your comments to:  silentknight@wishingwealthblog.com.

GMI: +5; Dow 30 and S&P 500 strong; Rally not trusted

@ 12:01 am

The GMI rose to +5, and the S&P 500 and Dow 30 stocks strengthened.  Even the QQQQ looks like it may fall into place, although it is still in the thirteenth day of a short term down trend (D-13).  Gmi0222 There were 359 new highs in my universe of 4,000 stocks.  85% of the Nasdaq 100 stocks rose on Wednesday, along with 79% of the S&P 500 stocks and 73% of the Dow 30 stocks.  43% of stocks are in a short term up trend, up from 29% a week ago.  And 70% of stocks closed above their 10 week averages.  All indicators increased and 32% of stocks are now within 5% of their 52 week highs….

I attended our local IBD Meetup tonight.  It struck me that this is the rally that people love to hate.  Why do we appear to distrust this up trend in the large cap stocks, as measured by the Dow 30 and the S&P 500?  Maybe this rally has further to go.

Please send your comments to:  silentknight@wishingwealthblog.com.

GMI falls to +4; Major divergence in QQQQ

@ 6:55 am

The GMI feel to +4, with only 74 (44%) successful 10 day new highs.  Stocks that hit a new high 10 days ago are unlikely to have closed Tuesday above where they closed 10 days earlier.  Gmi0221 The QQQQ is looking very weak.  Only 15% of the Nasdaq 100 stocks advanced on Tuesday, along with 35% of the S&P 500 stocks and 33% of the Dow 30 stocks.  The QQQQ fell below its 10 day average and all short term indciaotrs are negative. The GMI-S therefore fell to 63%.  The striking divergence between the QQQQ and the otehr indexes will need to be corrected soon.  At some point these market indexes will come into synch with each other.  Time to short the QQQQ?  IBD Meetup tonight.

Please send your comments to:  silentknight@wishingwealthblog.com.