Month: March 2006

GMI:+6; breakout stocks doing well

@ 8:23 am

The GMI remains at a maximum +6.  There were 503 new 52 week highs in my universe of 4,000 stocks on Thursday, the most since late January.  However, only 33% of the Nasdaq 100 stocks advanced, less then the 58% of the S&P 500 stocks and 63% of the Dow 30 stocks.  Gmi0316 The Nasdaq 100 is in its third day (U-3) of the new short term up-trend.  41% of stocks are in a short term up trend and 65% closed above their 10 week averages. Meanwhile, many of the break out stocks I mentioned yesterday have done well……

Please send your comments to:  silentknight@wishingwealthblog.com.

GMI:+6; GMI-L:100; GMI-S: 88; some stocks breaking out from bases

@ 12:01 am

The indexes are finally in synch and in up trends.  The GMI is +6 and both the GMI-L and GMI-S are strong.  Gmi0315 There were 376 new highs in my universe of 4,000 stocks on Wednesday and 38% of stocks are now in a short term up trend.  66% of the Nasdaq 100 stocks closed Wednesday above their 30 day averages.  Many stocks are breaking out of bases on huge volume increases.  Wednesday was the second day (U-2) of the new QQQQ short term up trend. 36% of stocks are within 5% of their yearly highs.  Among the stocks that appear to have broken out of bases on high volume this week are:  AZR, WCN, DEO, DXCM, VTIV (I own this), DXPE, ITW, AVTR, RIMM, STN, MHP, NTES, VNO, DPZ, MAN, and XNPT.  CMG, a recent spin off of MCD, also looks strong (I own it, based on my son’s opinion that Chipotle’s food is great, and the recent turnaround in earnings.) Of course, the fundamentals of all of these stocks need to be researched to see if they are as good as the technicals……………..

Please send your comments to:  silentknight@wishingwealthblog.com.

GMI: +6; VTIV- cup with handle?

@ 12:01 am

The GMI cllimbed to a maximum +6 on Tuesday as the QQQQ regained strength.  It looks like we may not get a head and shoulders top in that index.  Gmi0314 There were 250 new 52 week highs and 62% of stocks closed above their 10 week averages.  33% of the 4,000 stocks in my universe are now in a short term up trend and 33% are within 5% of a new high.  Between 83-88% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes climbed on Tuesday.  Tuesday was the first day in the new short term up trend in the QQQQ……..

One of the more reliable technical patterns for growth stocks is the cup with handle pattern made famous by William O’Neil, publisher of IBD.  A few weeks ago I bought AX (now NYX) on a cup with handle break out.  Well today I bought VTIV because it also looks like a cup with handle break out.  Vtiv_2 Note the prior up trend before the cup was formed,  and the huge volume this week as the pivot point at the top of the handle was exceeded.  VTIV had a recent quarterly increase in earnings of + 157% and a PE around 16.  Given this technical pattern and the great fundamentals, I thought it was worth taking a chance on VTIV.  Time will tell if this represents a major buying opportunity.

Please send your comments to:  silentknight@wishingwealthblog.com.