QQQQ Up-trend completes 37th day; IBD New America stocks at new highs; ASIA; most of my sold put options expire worthless on Friday

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The QQQQ completed the 37th day of its up-trend on Friday.   However, there were only 16 new highs and 5 new lows in my universe of 4,000 stocks on Friday.   Five of the 16 were on my IBD100 lists:   VNUS, GMCR, HANS, LINC and INT.   All of these 5 but   VNUS were also on the IBD New America page at some time this year.   I keep a watchlist of New America stocks to look for possible winners.   New America stocks are companies that IBD staff think have innovative products and exciting businesses.

Both Nicolas Darvas and IBD’s William O’Neil have written that winning growth stocks tend to have great stories behind them.   Most of the New America stocks eventually make it onto the IBD100 stocks lists.   So it is worth watching these stocks.   INT was on the New America list last February around $31 and closed on Friday at $41.90.   And HANS was written about last January around $34 and closed Friday at $42.55.   So, stocks on the New America list often take off sometime after their story is published in IBD.   One recent addition to the New America list that looks promising technically to me if it can break $18.60, is ASIA.  

Read moreQQQQ Up-trend completes 37th day; IBD New America stocks at new highs; ASIA; most of my sold put options expire worthless on Friday

Market rally continues; GMCR soars; Rocket Stocks; Dollar cost averaging into my pension

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The QQQQ up-trend completed its 32nd day on Friday.   When will the up-trend end?   No one knows.   My strategy is to hold growth stocks as long as the up-trend is in place.   Prior up-trends the past 3 years   have lasted as long as 86 days.   So the current up-trend may have a time to go, especially with the fear and skepticism accompanying this one.   On Friday there were only 11 stocks at new highs and 11 at new lows.   After the recent market decline there just are not many stocks near their 52 week highs. On two days last week there were   26 new highs in my universe of 4,000 stocks.   The last time there were more than 100 new highs in a day was September 18.

A stock at a 52 week high is rare, but even more rare is one at an all-time high.   I have been highlighting such rocket stocks the past few weeks.   One stock I wrote about in mid-April is GMCR.   Last week the stock soared 35%, bringing my account well into the black for the year.   There are a lot of other stocks at or near all time highs, including QSII, TNDM, ALGT, ARST, NFLX, AAN, AZO, HGG, ORLY, NTES, SNDA, LFT.   All but 2 (HGG and ORLY) are on my IBD100 list from April 27.   I own some of these rocket stocks and think that some of the next great market leaders will be from this list.   Any stock that can come through the past market decline and now be near its all time high is a winner.

Read moreMarket rally continues; GMCR soars; Rocket Stocks; Dollar cost averaging into my pension

QQQQ down-trend continues; Amazon kindles an impressive gain

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There were 3 new highs and 106 new lows in my universe of 4,000 stocks on Wednesday.   The QQQQ completed the 17th day of its short term down-trend.   It would have to rise a lot more to begin a new up-trend.   Still, I cannot resist buying an occasional strong stock during a counter trend rally. One stock I own a little of is AMZN, a stock championed by Judy.

AMZN had a huge gap up on January 30th when it beat earnings estimates, then consolidated for several weeks.   (Looks like a head and shoulders bottom?) Today, AMZN appears to have broken out again.   AMZN has a great new product in the Kindle 2 digital reader.

Read moreQQQQ down-trend continues; Amazon kindles an impressive gain

How I use put options as investment insurance

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There were 7 new highs and 1,221 new lows in my universe of 4,000 stocks on Friday.   The QQQQ completed the 14th day of its short term down-trend within a longer term down-trend. I heard on Fast Money that the AAII survey has the most bearish reading ever.   Furthermore, the momentum indicator in IBD for the Nasdaq 100 index futures is below 25%, the place from which   rallies tend to begin.   And with the T2108 at 7%, in deeply oversold territory, I am becoming reluctant to add more shorts right now.

Last week, a person who knows nothing about the market asked me how to short stocks.   This is reminiscent of the   stories of the shoeshine boys providing stock tips, near the roaring 20’s market’s top.   The sentiment is just too negative right now.   Does this mean the market has to turn up?  

Read moreHow I use put options as investment insurance

GMI and GMI-R are back to zero, QQQQ in new down-trend; TSYS and GLD; short or in cash

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The GMI and GMI-R have been zero since Tuesday’s close.   There were 3 new highs and 424 new lows in my universe of 4,000 stocks on Wednesday. The Worden T2108 Indicator is now 21% and heading down from the reading of 89% on January 6.   In the November swoon, this indicator bottomed at 1.2%.   So we have a long ways to go to hit the same depths present at the November bottom.   The QQQQ is now in the 2nd day of a new short term down-trend.

If you go back a few posts you will see that I wrote that TSYS looked like a break-out from a cup-with-handle formation.   Well, that stock continues to surge higher and hit a nine year high ($9.93) on Wednesday.   William O’Neil has said not to buy break-outs in a bear market, but this may be the one needle in a haystack that will work out.   I continue to hold a few shares of TSYS…..

I am also holding puts on some stocks in my IRA.   One cannot use margin in an IRA so I cannot short stocks there.   But I can buy put options or inverse ETF’s.   I don’t know if it is too late to short weak stocks, but I know that buying stocks that are in down-trends has not worked for me.   Then again, my friend Judy does so well buying stocks that bounce off of their lows.   In fact, she recently bought GLD in the 70’s and still holds some.   Gold and silver (SLV) have been steadily advancing.   I remain mainly in cash.