IBD100

GMI: 6; GMI-S: 88; QLD, IAI, RIMM, GOOG

@ 12:01 am

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.  Gmi1004_2An 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.

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:1; Signs of strength?; Back in a few days

@ 8:02 am

The  GMI remains at 1.  59-64% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes advanced on Monday. Gmi0814  There were a relatively large number (94) of new highs in my universe of 4,000 stocks.  Monday was the 28th day in the QQQQ decline……..

I am no longer going to report on the IBD100 list from 5/15.  Only 17% of these stocks closed higher on Monday than the day they were listed in May and they have greatly underperformed my universe of 4,000 stocks (+36% in the same period).  Given yesterday’s post showing that IBD changes two thirds of the list in a 3 month period, I see little value to tracking an old list.  I may decide to just track recent lists for a shorter time. Clearly the IBD 100 list is not useful in a down trending market…….

While the market has been in a down trend, I am seeing some signs of life in the markets.  First, there were 94 new highs in my stock universe on Monday.  Second, the QQQQ has a bullish divergence on its MACD (the MACD did not decline to a new low along with the QQQQ ).  So watch the QQQQ carefully.  A close above 37.39 (now at 36.7) would begin to change the GMI and make me look for a turn…………

I am suspending posts for a few days because I will be out of town. 

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