Stocks held up well on Monday. A lot of my stocks hit new highs, including ASPS, ALXN, DDD. AAPL is akso coming alive as we approach second quarter earnings. This market looks like it wants to go up. I bought some QLD and will average up slowly. There is an abbreviated trading day on Tuesday.
GMI back to 6 (of 6); 10th day of QQQ short term up-trend; 22 Darvas stocks
Well, the expected window dressing came, but on the last day of the month! Now we get to see if the market can continue to climb or if it will go into a pre-earnings release lull. I suspect it will be the latter. There were 339 new highs on Friday in my list of 5,861 stocks. This was the highest number of new highs since March 26. The Worden T2108 is at 71%, still in neutral territory. I do not begin to worry about too much exuberance in the market until the T2108 reaches 80%. This market remains in a Weinstein Stage 2 up-trend. IBD now sees the market in a confirmed up-trend and the GMI Buy signal remains in effect. I will therefore gradually add to my long positions.
22 stocks showed up in my Darvas Scan. They are, in alphabetical order: ABAX,ABCO,ALXN,ASPS,CSTR,CYBX,DG,GEOI, IOC,ITIC,LL,QCOR,SHW,
SIX,SLXP,SUSS,SXCI,TCBI,TDG,ULTA,ULTI,ZUMZ.
14 of these 22 stocks are in my IBD50, CAN SLIM, or New America watchlists. All of these stocks passed my technical criteria and have good fundamentals. They are worth researching for possible buys………
This weekend the DC area was hit with a sudden fierce storm that brought down electrical power for over 500,000 people. The storm slowed everything down with many traffic lights not working. I was unable to spend as much time as usual on this blog. However, with a shortened holiday week upon us I hope to write more later this week.
9th day of QQQ short term up-trend; strong end of 2nd quarter? Impact of AAPL wage increases
The GMI buy signal has been in place since June 19, and Thursday was the 9th day of the short term up-trend in the QQQ. This has been a very volatile period and I have struggled to follow these signals. I have been in and out of the market and remain mainly in cash in my trading accounts. I am fully invested in mutual funds in my university pension, however, because there are rules limiting my ability to go back and forth from mutual funds to a money market fund.
This morning the index futures are significantly above fair value so it looks like we will get a bounce as the market closes out the second quarter. We will then move into the period just prior to the release of second quarter earnings. Stocks will be driven according to individual earnings expectations, announced 2nd quarter results and company thoughts regarding their outlook for the future .
I am not trading AAPL right now. While the stock often does well near the release of earnings, I suspect the recent news about their raising wages of their sales force may limit future earnings growth. There could be a reduced forecast coming. We need to be careful.