GMI falls to +4; Major divergence in QQQQ

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.

GMI: +5; All indexes strong but QQQQ; Some interesting stocks

All indicators held on Friday, as the GMI remains at +5.  Only the Daily QQQQ Index is negative, with the QQQQ in its eleventh day of a short term down trend (D-11).  Gmi0217 There were 307 52 week highs in my universe of 4,000 stocks.  33% of the Nasdaq 100 stocks advanced on Friday, along with 45% of the S&P 500 stocks and 47% of the Dow 30 stocks.  37% of stocks are in a short term up trend and 69% are in a longer term up trend.  39% of stocks closed above their 10 day average for the past 4 days, an indication of strength.  31% of all stocks are within 5% of their 52 week highs………….

The WPM clearly highlights the lagging Nasdaq 100 stocks.  Wpm0217 Only the QQQQ failed to close above its 30 day average.  In addition, only 47% of its components stocks did so, compared with 59% or more of the components of the other four indexes.  In contrast, all five indexes closed above their longer term 30 week averages, as well as 63% or more of their component stocks…….

I should not spurn all stocks now just because the Nasdaq 100 type stocks are relatively weak in the short term.  There are plenty of big cap stocks (especially financials) and small and mid-caps that are in up trends and ready to purchase. Nevertheless, it is always better to have all of these indexes in synch with each other.  Some stocks I am looking at are: KOMG, ADAM, OXPS and ET.

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

GMI: +5; GMI-S: 69; All but QQQQ in up trend

The GMI remains at +5, even as the QQQQ remains in a down trend.  There were Gmi0216327 new 52 week highs in my universe of 4,000 stocks.  All indexes but the daily QQQQ index are positive.  The QQQQ is in its 10th day (D-10) of a short term down trend.  Some of the old leaders came to life on Thursday (GOOG +24.08; AAPl +1.35).  31% of stocks are now within 5% of their yearly highs………

A number of foreign banks have been especially strong:  BBD, UBB, CIB, ITU. Among Dow stocks, even GM, VZ, MRK and DIS appear to have turned up. 70% of the Dow 30 stocks are now above their 30 day averages, compared with 55% of Nasdaq 100 stocks and 63% of the S&P 500 stocks.

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

GMI: +5, GMI-S: 63; QQQQ still weak; Some possible winners

The GMI rose to +5 and most of the indexes have recovered.  All but the QQQQ are in short term up trends.  However, the GMI-L is at 94, indicating that all indexes, including the QQQQ, remain  in longer term up trends.  Gmi0215 The failure of the QQQQ stocks to rise in the short term along with the other indexes causes me to be somewhat cautious.  But one should not fight the tape and the tape suggests that buying large and small cap (nontech?) stocks may be profitable.  68% of the Nasdaq 100 stocks rose Wednesday, along with 66% of the S&P 500 stocks and 60% of the Dow 30 stocks.  However, only 29% of the 4,000 stocks in my universe remain in short term up trends.  Still, there were 221 new yearly highs on Wednesday.  Wednesday was the ninth day (D-9) in the short term down trend in the QQQQ….

Among the stocks that hit a 52 week high on Wednesday, that have doubled in the past year and that have recent quarterly earnings increases of at least 70% are:  LMS, AIRM, KNDL, LDSH, ITRI, GES, ESRX, WDC, VSEC.  This list may be the place to look for future winners, if this rally is for real……

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

GMI back to +4; GMI-S: 50; GMI-L: 94

Tuesday’s rally took the GMI up two to +4.  The GMI-S rose to 50, with the Dow being the strongest indicator.  The GMI-L is at 94 reflecting the continuing strength in the longer term indicators.  Gmi0214 There were 145 new highs in my universe of 4,000 stocks and 101 successful 10 day new highs.  The Daily SPY Index was too close to call.  Tuesday was the eighth day in the QQQQ short term decline (D-8).  90% of the Dow 30 stocks advanced on Tuesday, compared with 80% of the S&P 500 stocks and 65% of the Nasdaq 100 stocks.  In spite of the strength in the Dow 30 and S&P 500 stocks, the percentage of stocks in a short term up trend declined to  29%.  26% of stocks are now within 5% of their 52 week highs.  Only 4% of the stocks that have doubled the past year hit a new high on Tuesday.  It appears that the strength is coming in a different set of stocks than the recent leaders.