GMI holds +2; ISRG and ADSK; IBD Meetup tonight

Not much change in my indicators Tuesday.  The GMI remains at +2. Gmi927   Between 40-50% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes rose.  There were only 67 successful 10 day new highs–stocks that hit a new high 10 days ago and closed higher Tuesday than 10 days earlier.  Buying new highs has not been a strategy likely to show profits.  With only 25% of stocks in a short term up-trend, this is not the time to be positioned long on many stocks.

Nevertheless, I could not resist buying some ADSK and ISRG.  Isrg_1 Note the above average up volume Tuesday on ISRG as it broke above its 30 day average (red line, click on to enlarge).  ISRG looks like it has completed its consolidation after a huge move in July. Both stocks seem to be bouncing from support, probably in anticipation of good 3rd quarter earnings.  I bought these and immediately placed stop losses below their moving averages.  I am still mostly short and in cash.

Tonight is the monthly IBD meetup and I will be able to  assess group sentiment.

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