The GMI remains at 1. 59-64% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes advanced on Monday. There were a relatively large number (94) of new highs in my universe of 4,000 stocks. Monday was the 28th day in the QQQQ decline……..
I am no longer going to report on the IBD100 list from 5/15. Only 17% of these stocks closed higher on Monday than the day they were listed in May and they have greatly underperformed my universe of 4,000 stocks (+36% in the same period). Given yesterday’s post showing that IBD changes two thirds of the list in a 3 month period, I see little value to tracking an old list. I may decide to just track recent lists for a shorter time. Clearly the IBD 100 list is not useful in a down trending market…….
While the market has been in a down trend, I am seeing some signs of life in the markets. First, there were 94 new highs in my stock universe on Monday. Second, the QQQQ has a bullish divergence on its MACD (the MACD did not decline to a new low along with the QQQQ ). So watch the QQQQ carefully. A close above 37.39 (now at 36.7) would begin to change the GMI and make me look for a turn…………
I am suspending posts for a few days because I will be out of town.
Please send your comments to: firstname.lastname@example.org.