IBD Meetup Group Night; GMI: +6; QQQQ rally leaders; FNM and FRE look sick

Tonight was IBD Meetup night.  A large group of 14 persons came, indicating that interest in the market has returned.  The group could be characterized as being cautious about the market.  It seemed that people were making some money, but were still licking their wounds and their accounts were mainly down for the year.  One of the persons most skilled in IBD techniques was skeptical about the current rally because of its mediocre volume.  Maybe this bull has further to go………………………..

The GMI is still at +6.  The indexes were a little stronger todayGmi727  with 251 new highs among the 4,000 stocks in my universe.  There were 146 successful 10 day new highs–stocks that hit a new high 10 days ago and closed higher today than 10 days ago.  72% of the Nasdaq 100 stocks closed above their 30 day averages.  However, the percentage of stocks in a short term uptrend fell to 51%, suggesting that fewer stocks are following the leaders.  Still, between 59% and 63% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes rose today.  We are in the 14th day of the QQQQ uptrend (U-14)………………..

Since the beginning of this uptrend on July 8, the QQQQ has risen +5.16%.  During that time 70% of the Nasdaq 100 stocks rose–anywhere from 4% to 32%.  The median increase among the advancing stocks was +6%.  However, the top 10 performers rose from 14-32%.  The largest gainers were (percents are rounded):  SNDK (+32%), AMZN (+26%), SSCC (+22%), EBAY (+22%), APCC (+18%) and AMGN (+18%).  The largest decliners were: DISH (-5%), PETM (-5%), JNPR (-5%), VRSN (-13%) and SANM (-15%). The 70% of stocks gaining in this period demonstrates the wisdom of Livermore and O’Neil’s rule to always trade with the general market trend.  Why fight the trend– and the odds…………………………………..

A number of stocks I have been trading showed strength today–HANS, BBY, IVGN, KOMG, SHLD.  And a lot of other growth stocks bounced off of their moving averages.  However, two stocks that look particularly sick are FRE and FNM (I own puts on FRE).  My interest rate indicators continue to climb.  Maybe the higher rates are going to finally kill the mortgage market……………………………….

Send me your feedback at: silentknight@wishingwealthblog.com.

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