The GMI finally went to the maximum of +6, with the Daily QQQQ indicator turning positive. There were 238 new 52 week highs in my universe of 4,000 stocks. This represents 6% of all stocks in my universe. Compare this percent to the 25% of stocks that have doubled in the past year that hit a new 52 week high. What more proof do we need than this to show that the strongest stocks tend to get stronger ? Nicolas Darvas (see his books to the right) was very wise to have used doubling in the past year as one criterion for buying a stock. All of my other indicators changed slightly yesterday. 41% of the Nasdaq 100 stocks rose on Thursday, along with 36% of the S&P 500 stocks and 40% of the Dow 30 stocks. Still, Thursday was the first day of the new short term up trend in the QQQQ. With all of the bearish sentiment around for tech stocks, it would be just like the QQQQ to start a major up trend. Keep an eye on the biotechs, which may be forming a bottom. The MACD for the biotech ETF, BBH, has recently had a bullish crossover.
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