GMI: +2; GMI-S: 19; Leaders crushed

The market weakened again with the GMI now falling to +2.  I do not have tomorrow’s IBD yet.  If the IBD Mutual Fund Index is below its 50 day average, then we are really at +1.  The GMI-S fell to 19, with the DIA being the strongest of the indexes.  Gmi0213 Only 29% of the Nasdaq 100 stocks rose on Monday, along with 34% of the S&P 500 stocks and 40% of the Dow 30 stocks.  HON, HPQ and T are among the strongest Dow stocks.  There were only 87 new highs in my universe of 4,000 stocks and 84 successful 10 day new highs.  Only 31% of stocks are in a short term up trend.  Monday was the seventh day in the QQQQ short term down trend……….

Since its peak on January 10, the QQQQ has declined 5.6% and 60% of the Nasdaq 100 stocks have declined.  During this period the leaders have been crushed.  The biggest declines, in order were:  GOOG (-26%), YHOO (-25%), SNDK (-23%), ISRG (-21%), AAPL (-20%), INTC (-19%), WFMI (-18%), AMZN (-17%).  Most of these stocks are the IBD type of growth stocks that rocketed in a strong market.  The carnage sustained by these stocks does not bode well for the market. The leaders tend to be slaughtered first in a general market decline.

Please send your comments to:

1 thought on “GMI: +2; GMI-S: 19; Leaders crushed”

  1. I took a look at today’s eIBD and the MF index is just below the 50 day MA. It is also interesting to note that the RS line is heading south at a nice high pace.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.