Stock Market Technical Indicators & Analysis
The GMI remains at 2 (of 6) and the GMI-R at 4 (of 10). The Worden T2108 indicator is 56%, in neutral territory. Three IBD100 stocks hit a new high on Friday: CWT, EBS and SHEN. I own CWT and successfully wrote December puts on EBS in early December.
Thursday was the 8th day of the current QQQQ short term up-trend. The GMI and GMI-R remain unchanged, at 2 and 4, respectively. There were 11 new highs and 40 new lows in my universe of 4,000 stocks on Thursday. Four of the new highs were on some of my IBD100 lists from the past year: DLTR, CWT, SHEN and THOR. These stocks may be among the new market leaders if this up-trend holds. Meanwhile, options expire on Friday, and I believe that all of the cash secured puts I sold will expire worthless, and profitable for me.
The GMI and GMI-R are back to 2 and 4, respectively. The QQQQ short term up-trend has continued for 6 days, and typically an up-trend lasts for a while after it passes 5 days. The Worden T2108 indicator climbed 22, to 54% and is now at its highest level since September 2nd. 73% of Nasdaq 100 stocks closed above their 30 day average, the most since August 28th. This market continues to gain technical strength. I find that I must tune out the media, who are embracing an ever declining bear market. Last weekend I became optimistic after studying my charts and then became very anxious when I listened to the Fox channel business shows on Sunday morning. The pundits tend to drive with their hands on the rear view mirror. The truck/car is moving up and I am slowly jumping aboard. I can always jump off when it changes direction. I am gradually accumulating the ultra long index ETF's, QLD and DDM. Two of the stocks on my IBD 100 lists hit a new high yesterday, CWT (a water stock) and ALGT (I own some). In addition, it looks like all of the cash secured puts I wrote about several posts ago will expire on Friday unassigned, and highly profitable for me. In early January I will consider selling a new batch of cash secured puts. My university pension funds will remain in cash until the longer term trends turn up. Until they do, I consider this to be a short term rally within a solid down-trend. But short term rallies are tradeable for me……