ETF

The GMI remains at 6 and the GMI-S rose to 88, showing that almost all of my short term indicators for four indexes are now positive.  An extraordinary 96% of the Nasdaq 100 stocks rose on Wednesday, compared with 89% of the S&P500 stocks and 87% of the Dow 30.  87% of the IBD100 stocks from Monday also rose, and 14 hit new highs: BAMM,TWGP,NITE,WRLD,DRIV,AEOS,GYMB,CHL,SEIC,CNS,

ICLR,BEBE,PHLY,and MS).  Seven Nasdaq 100 stocks hit new highs: RIMM, INTU, CSCO, FISV, CDWC, AKAM, and CMCSA.  I am riding high with the QLD, a ProShares  ETF that moves twice as much as the QQQQ, which it mimics.  I am a also holding IAI, an ETF of U.S. brokerage stocks, a group that typically rises in bull markets when trading volume expands.  Why not own a piece of the casinos.  Other stocks that came alive today include RIMM, and finally GOOG, both of which I own.  Wednesday was the 33rd day of the current QQQQ up-trend.  I trade so much better when I follow the market and ignore the media pundits.

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

The market finally confirmed its up-trend on Tuesday and the GMI turned 6.  The techs are the new leaders; 90% of the Nasdaq 100 stocks rose, along with 81% of the S&P 500 stocks and 83% of the Dow 30 stocks.  There were 208 new yearly highs in my universe of 4,000 stocks.  82% of the Nasdaq 100 stocks are now above their 30 day averages.  Monday was the 17th day in the QQQQ up-trend.  The GMI-S is now 94, with all but one of the short term indicators positive for the SPY, DIA, QQQQ and IJR.  Seven of the stocks from the IBD100 list published on 8/14 hit a new high on Tuesday:  SAIA, BRLI, ATRS, CXW, WCG, ISYS and PNFP.  In addition to holding QLD, an ETF that climbs twice as much as the QQQQ, I am beginning to search for other stocks breaking out.

While the media suggests this rise is the result of falling oil prices, I think the market’s strength stems from the declining short term interest rates, suggesting that the Fed will hold at the next meeting (see prior posts).  Time to buy stocks….

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