Wishing Wealth Blog

The GMI remains at +6 as the market internals strengthen.  79% of the 66 stocks that hit a new high 10 days ago closed higher on Thursday than 10 days earlier.  There were 289 new highs Thursday, the most since October 4.  More than one half (51%) of the 4,000 stocks in my universe closed above their 10 week averages, up from 21% on October 13.  36% of stocks are in a short term up-trend, up from 8% on October 18.  And 80% of the stocks that have doubled in the past year closed above their 30 day averages.  Twice as many stocks are within 5% of their new highs than their new lows (19% vs. 9%).

It should be clear that trading growth stocks at new highs is profitable again.  Among the stocks that have doubled in the past year and have triple digit earnings gains last quarter are:  TIE, BABY, GOOG, MDR, SYKE, GI, IRIS, HANS, ASF, BTU, HOLX, LUFK, JLG.    In a new rally, the stocks that break to new highs first often become the leaders of the bull move.  This list would be worth monitoring for future winners.

Please send me your feedback at: silentknight@wishingwealthblog.com.

The GMI reached the maximum+6 Wednesday.  There were 235 new highs and 45 new lows on Wednesday.  There were only 31 successful 10 day new highs but this represented 62% of the 50 stocks that hit a new high ten days ago.  Given the strength in the rest of the market, I called this index positive.  Almost one half (48%, +11) of the 4,000 stocks in my universe closed above their 10 week averages.  82% of the Nasdaq 100 and S&P 500 stocks advanced on Wednesday, along with 77% of the Dow 30 stocks.  78% of the stocks that have doubled in the past year are now above their 30 day averages, an increase of +13.  The strongest stocks over the past year are recovering faster than the rest of the market.  The strong grow stronger.  Twice as many stocks are now within 5% of their new highs than their new lows (19% vs. 9%).  The end of year rally has begun.

Please send me your feedback at: silentknight@wishingwealthblog.com.