IBD

GMI: 6; GMI-S: 100; All systems go

@ 10:59 pm

The market has come alive with IBD 100 type growth stocks leading the way.  There were 212 new highs in my universe of 4,000 stocks and there were 100 successful 10 day new highs (stocks that hit a new high 10 days ago and closed on Wednesday higher than they closed 10 days ago).  Gmi0913 This means that buying new highs has become profitable again.  The GMI-S is now 100, signifying that all short term indicators for four key indexes are positive.  While about 60% of most stocks advanced on Wednesday, over 80% of the IBD 100 stocks from 5/15 and 8/14 rose.  Growth stocks are gaining strength. Wednesday was the 18th day of the current QQQQ up-trend.  I am buying QLD and AAPL and IAI.  IBD 100 stocks from 8/14 that hit a new high on Wednesday include:  PRXL,IMKTA,WCG,NITE,VIP,CTSH,PNFP,SAIA,DRIV,BRLI.  Stocks that hit a new high early in a rise often become the leaders of the next bull move.

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

GMI: 6; Time to look for buys

@ 12:01 am

The market finally confirmed its up-trend on Tuesday and the GMI turned 6.  The techs are the new leaders;Gmi0912 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.

GMI: 4; Fed is done raising rates

@ 10:46 pm

The GMI remains at 4, but barely.  Gmi0908 The IBD growth mutual fund index is sitting on its 50 day average and could fall below this week.  I believe this week will determine whether the current QQQQ up-trend, in its 15th day, will continue.  Meanwhile, the short term interest rate indicator continues to decline, suggesting that the Fed is done raising rates, for now………

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