In spite of all of the negative news out there, the QQQQ still appears to be recovering, having completed its 21st day of a short term up-trend. There were only 11 new highs and 12 new lows in my universe of 4,000 stocks on Thursday. Still, 82% of the Nasdaq 100 stocks closed above their 30 day averages. I continue to hold QLD and to wait for option expiration next Friday when most of my cash-secured puts should expire worthless and profitable for me. Five stocks on my IBD 100 lists the past year hit a new high on Thursday: SHEN,BKR,ASEI,NCIT and VSEC. I own some of these. Remember, if this rally holds, the stocks that have come through the current huge decline so that they are at new highs may be some of the new market leaders. I don’t bottom fish. I look for rockets already heading towards the moon.
IBD
GMI: 2; GMI-R: 5; T2108: 85%
The GMI-R fell one, to 5 on Wednesday. There were only 5 new highs and 12 new lows in my universe of 4,000 stocks on Wednesday. None of the 5 new highs were on my IBD100 lists from the past year. The QQQQ completed the 20th day of its short term up-trend. The T2108 indicator backed off from the peak level reached on Tuesday. I am still holding QLD as long as this up-trend holds.
GMI: 2; GMI-R: 6; 19th day of QQQQ short term up-trend: T2108: 89%
The QQQQ short term up-trend continued and completed its 19th day on Tuesday. The GMI and GMI-R remain unchanged, at 2 and 6, respectively. A note of caution, however, is that the Worden T2108 Indicator hit 89%, about as high as it gets during an up-trend. This means that 89% of the NYSE stocks closed above their 40 day averages. T2108 at this level does not signal an immediate decline, it can remain at 80-90% for several months. Seven stocks on my IBD100 lists the past year hit a new high on Tuesday: TWGP,VSEC,NPK,BKR,AMSF,AVAV and MYGN.