Month: November 2005

The GMI reached the maximum+6 Wednesday.  There were 235 new highs and 45 new lows on Wednesday.  There were only 31 successful 10 day new highs but this represented 62% of the 50 stocks that hit a new high ten days ago.  Given the strength in the rest of the market, I called this index positive.  Almost one half (48%, +11) of the 4,000 stocks in my universe closed above their 10 week averages.  82% of the Nasdaq 100 and S&P 500 stocks advanced on Wednesday, along with 77% of the Dow 30 stocks.  78% of the stocks that have doubled in the past year are now above their 30 day averages, an increase of +13.  The strongest stocks over the past year are recovering faster than the rest of the market.  The strong grow stronger.  Twice as many stocks are now within 5% of their new highs than their new lows (19% vs. 9%).  The end of year rally has begun.

Please send me your feedback at: silentknight@wishingwealthblog.com.

The GMI rose to +2 on Monday.  There were five times more new highs than lows (165/31) in my universe of 4,000 stocks, a promising sign. 86% of the Nasdaq 100 stocks advanced Monday, along with 80% of the S&P 500 stocks, but only 57% of the Dow 30 stocks.  The daily QQQQ and SPY indicators are too close to call.  An advance today will turn them positive.  A number of my internal indicators improved yesterday.  36% of stocks are now above their 10 week averages  and 25% are in a short term up-trend.  Almost two-thirds (64%) of the 177 stocks that have doubled in the past year are now above their 30 day averages– the strongest stocks are recovering.  And there are more stocks within 5% of their yearly highs than lows (15% vs. 11%). Monday was day three of the current QQQQ downtrend (D-3).

Please send me your feedback at: silentknight@wishingwealthblog.com.