The GMI is back to 2. On a day when the market had a great excuse to decline, stocks performed the best they have this week. 70-71% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes advanced. But there were only 42 new highs and 163 new lows in my universe of 4,000 stocks. Thursday was the 26th day in the current QQQQ short term down-trend. 27% of my stock universe and 40% of the IBD 100 list from 5/15 remain in a bullish Stage 2 up-trend (see Weinstein book to right for a description of stage analysis). Only 37% of my stock universe and 21% of the IBD 100 list of 5/15 closed higher on Thursday than they did on 5/15. None of these IBD 100 stocks from 5/15 hit a new high on Thursday.
I do not think this is the time to buy stocks and I am mainly in cash or short. Nevertheless, I cannot resist mentioning five stocks that hit a new high on Thursday and had triple digit earnings increases during their most recent quarter: TTEC, ZOLL, OCN, IMKTA, CVA. Any stock with huge earnings increases that can hit a new yearly high after the current decline is probably worth monitoring (I own one of these)…….
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