A lot of stocks are beginning to look good. However, there were only 6 new highs and 8 new lows in my universe of 4,000 stocks on Friday. Two of the 6 new highs are stocks on the IBD100 list, CPSI and TNDM. TNDM is at an all-time high and both of these stocks came public within the past 8 years, a prime criterion of past winning stocks, according to IBD founder William O’Neil. I scanned my universe and found 105 stocks that are within 10% of their 52 week highs and that have promising technicals. Among these stocks that are on my IBD100 lists from the past year and that also have last quarterly earnings up 50% or more are: AIPC, GMCR, ALGT, QSII, SXL, JJSF, NFLX and PNRA. I own some of these stocks…
The GMI remains at 4 and the GMI-R is at 7. The IBD Mutual Fund Index is above its 50 day average, indicating to me that growth mutual funds are starting to make money. When these fund managers can make money buying growth stocks, so can I. The Worden T 2108 is now at 84%, heading towards overbought territory, but not a concern to me, given that the market is snapping back from very over-sold readings. Both the QQQQ and SPY have closed above their 10 week averages for several weeks, a key sign of technical strength. While still in longer term down-trends, when these ETF’s are above their 10 week averages, I have usually been able to make money buying stocks.