GMI and GMI-R each lost one. There just aren’t enough new highs to compute the 10 day successful new high indicator. There were only 12 new highs and 8 new lows in my universe of 4,000 stocks on Monday. Seven of the 12 are on my IBD100 lists: SNDA, ALGT, NFLX, NTES, LFT, GMCR and CPSI. These stocks, some of which I own, are leading the market up.
IBD
I am quoted in Monday’s IBD
On page B16, there is a quote from Dr. Eric W., of Maryland. I am pleased to acknowledge William O’Neil and his newspaper for contributing to my trading success over the past 25 years. It was only after I began to read IBD that I consistently made money trading.
Buying Rocket Stocks; My market indicators are very strong.
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.