Darvas

QQQQ Up-trend completes 37th day; IBD New America stocks at new highs; ASIA; most of my sold put options expire worthless on Friday

@ 10:56 pm
GMI4/6
GMI-R8/10
T210892%

The QQQQ completed the 37th day of its up-trend on Friday.   However, there were only 16 new highs and 5 new lows in my universe of 4,000 stocks on Friday.   Five of the 16 were on my IBD100 lists:   VNUS, GMCR, HANS, LINC and INT.   All of these 5 but   VNUS were also on the IBD New America page at some time this year.   I keep a watchlist of New America stocks to look for possible winners.   New America stocks are companies that IBD staff think have innovative products and exciting businesses.

Both Nicolas Darvas and IBD’s William O’Neil have written that winning growth stocks tend to have great stories behind them.   Most of the New America stocks eventually make it onto the IBD100 stocks lists.   So it is worth watching these stocks.   INT was on the New America list last February around $31 and closed on Friday at $41.90.   And HANS was written about last January around $34 and closed Friday at $42.55.   So, stocks on the New America list often take off sometime after their story is published in IBD.   One recent addition to the New America list that looks promising technically to me if it can break $18.60, is ASIA.  

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Market rally does not need a rest; QSII and a few others break-out to all-time highs

@ 10:15 pm
GMI5/6
GMI-R9/10
T210892%

The media pundits claim the market needs to rest.   The market gets tired and needs to consolidate for a while–such utter nonsense! I wrote a few posts ago that the rebound in the indexes thus far is actually quite small, compared with the rebounds in the 30’s.   The Dow is   up only about 24% from the bottom, compared with about 100% snap backs from the bottoms in the 30’s.   The QQQQ is only in the 22nd day of its up-trend.   The up-trend that ended July 27, 2007,   lasted 80 days!   The current rally may have a lot longer to go.

Meanwhile, by following the market’s up-trend and the GMI , my account is now in   the black for the year and I am now working off the 5% loss from the prior year.   How am I doing it?   Just by buying the types of stocks that I list to the right of my post each day.   Long positions in stocks like AAPL, GMCR and NFLX have helped, along with some call options on QLD.   Now that so many stocks are in up-trends I am also writing cash secured puts in my IRA on stocks I hope never   to own.   I will write more about this interesting technique in a later post.

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Buying Rocket Stocks; My market indicators are very strong.

@ 7:39 am

I just completed the best 2 week period in a year. I own a lot of the stocks listed to the right, which are having terrific runs.   The GMI registered 5 for the first time since August, 2008, before the start of the major market decline.   My Successful 10 day New High Index turned positive.   There were finally enough stocks that hit a new high 10 days ago that have closed higher than they did 10 days ago.

Stocks on the 52 week new high lists that are also at or near all time   highs is where I find potential rockets.   Nicolas Darvas made a fortune trading such   stocks. IBD100 stocks near all time highs include: GMCR, NFLX, MNRO, QSII, VLGEA, AZO, SNDA, NTES, ALGT. TNDM.   TSYS, HGG and ORLY are also very strong, but are not yet on my IBD100 lists.

While most of the world looks for bargain stocks at new lows, I seek rockets heading to the moon.   The greatest winning stocks are those heading up to ever higher levels.   Think of how many times that YHOO   or CSCO or MSFT hit all time new highs as they multiplied their prices many times during their great bull runs.   If you want to hop a rocket to the moon, it better be pointing up and gaining altitude.

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