GMI: 6; Time to look for buys

The market finally confirmed its up-trend on Tuesday and the GMI turned 6.  The techs are the new leaders;Gmi0912 90% of the Nasdaq 100 stocks rose, along with 81% of the S&P 500 stocks and 83% of the Dow 30 stocks.  There were 208 new yearly highs in my universe of 4,000 stocks.  82% of the Nasdaq 100 stocks are now above their 30 day averages.  Monday was the 17th day in the QQQQ up-trend.  The GMI-S is now 94, with all but one of the short term indicators positive for the SPY, DIA, QQQQ and IJR.  Seven of the stocks from the IBD100 list published on 8/14 hit a new high on Tuesday:  SAIA, BRLI, ATRS, CXW, WCG, ISYS and PNFP.  In addition to holding QLD, an ETF that climbs twice as much as the QQQQ, I am beginning to search for other stocks breaking out.

While the media suggests this rise is the result of falling oil prices, I think the market’s strength stems from the declining short term interest rates, suggesting that the Fed will hold at the next meeting (see prior posts).  Time to buy stocks….

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