GMI: +6; Some promsiing stocks

The GMI is solidly at the maximum reading of +6.  I am surprised that I listened to a local weekly radio commentator (Yudee Chang) Saturday morning (AM 570) who said we were in a "secular bear market." One of my fellow IBD meet-up participants also wrote that he was resisting this rally.  Well, I fly on instruments. And the instruments tell me this market is in a confirmed up-trend, maybe the best this year.  Three quarters of the 60 stocks that hit a new high 10 days ago closed higher on Friday than they closed 10 days earlier. Gmi1104 There were 114 new highs on Friday among the 4,000 stocks in my universe of stocks. Almost one half (46%) of the stocks closed above their 10 week averages, and 40% are in an up-trend, the highest since September 20, and up from 8% in mid-October.  Three quarters (77%) of the stocks that have doubled in the past year are now above their 30 day averages, and twice as many stocks (18% vs. 9%) are within 5% of a new high as to a new low.  This is the time for buying proven growth stocks at new highs.

The WPM paints a similar bullish scenario.  Wpm1104 All five market indicators are now above their 30 day and 30 week averages.  Two thirds or more of their component stocks closed above their 30 day averages and one half or more are above their 30 week averages.  The Nasdaq 100, as measured by the QQQQ, is the strongest index.  The time for  tech stocks is here.

Over my 40+ years of trading, I have noticed that during the times when I have become so frustrated with the market that I have totally gone to cash, the market bottoms.  The past 10 days I was in such a state of mind and therefore took the opportunity to transfer my account to a new broker.  So, of course, the market bottomed while I had no access to my funds.

Now that I am ready to jump back into the market, I used TC2005 to scan the market for all stocks that hit a new high on Friday.  In a new up-trend, the stocks that break first to new highs often become the leaders of the new cycle.  I then refined the list of stocks to contain only those with high recent earnings or revenue increases, that have doubled in the past year, and that are near all-time highs.  These are the stocks I will watch for further signs of strength, ranked by last quarter’s earnings increase:

  KUB,BABY,GOOG,VTAL,NWRE,CUTR,RL,CPL,IX,TRAD,WVVI,

OCAS,DBRN,MKTAY,TMI,IRM,PETS,GS,ITG,GES,AOB,MRGE,

AQNT,KSU,ESLR,GROW, MGI.

All of thee stocks will not perform well.  The key is to research them, pick a few, make pilot buys and then to slowly concentrate money in the few that prove themselves, always maintaining a stop-loss order as insurance against big losses.

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

GMI: +6; Market internals continue to strengthen; A watchlist of doublers

The GMI remains at +6 as the market internals strengthen.  Gmi1103 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.

GMI: +6; End of year rally

The GMI reached the maximum+6 Wednesday.  There were 235 new highs and 45 new lows on Wednesday.  Gmi1102_1 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.

GMI: +5; Market strengthening; Scan of the market

The GMI rose to +5 Tuesday, indicating the beginning of an up-trend.  Gmi1101_1 There were 138 new highs and only 67 new lows.  The Daily QQQQ and SPY indicators turned positive.  And the IBD growth mutual fund index is now above its 50 day moving average, demonstrating that the pros who invest in growth stocks are doing better.  65% of the stocks that have doubled in the past year closed above their 30 day averages, another indication that the growth stocks are recovering.  Tuesday was the first day in the new QQQQ up-trend (U-1).

So it is now time to look for stocks to buy.  Among the strong stocks that came up in my scan of the market are: BBD, HOLX, RATE, NMTI, ESLR, GOOG, NDAQ, SMTS, THE , BCSI, PRLS, IRIS, TIE. This is a good list to begin to research.  All have doubled in the past year and are near their yearly highs. 

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

GMI: +2; 165 yearly highs; D-3

The GMI rose to +2 on Monday.  Gmi1031 There were five times more new highs than lows (165/31) in my universe of 4,000 stocks, a promising sign. 86% of the Nasdaq 100 stocks advanced Monday, along with 80% of the S&P 500 stocks, but only 57% of the Dow 30 stocks.  The daily QQQQ and SPY indicators are too close to call.  An advance today will turn them positive.  A number of my internal indicators improved yesterday.  36% of stocks are now above their 10 week averages  and 25% are in a short term up-trend.  Almost two-thirds (64%) of the 177 stocks that have doubled in the past year are now above their 30 day averages– the strongest stocks are recovering.  And there are more stocks within 5% of their yearly highs than lows (15% vs. 11%). Monday was day three of the current QQQQ downtrend (D-3).

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