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….

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

GMI: 4; Techs back from the edge

The GMI remains at 4, and the techs strengthened on Monday.  There were more new highs than lows (86 vs. 54) in my universe of 4,000 stocks.  71% of the Nasdaq 100 stocks rose, compared with Gmi0911 64% of the S&P 500 stocks and 54% of my universe of stocks.  Clearly, tech stocks represented by the QQQQ were stronger on Monday.  The QQQQ up-trend is in its sixteenth day.  The GMI-S has risen to 81, as all four short term indicators of the QQQQ and DIA are positive.  A few more up days for the QQQQ will convince me that the up-trend will continue and I will continue to accumulate QLD……….

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

GMI: 4; Fed is done raising rates

The GMI remains at 4, but barely.  Gmi0908 The IBD growth mutual fund index is sitting on its 50 day average and could fall below this week.  I believe this week will determine whether the current QQQQ up-trend, in its 15th day, will continue.  Meanwhile, the short term interest rate indicator continues to decline, suggesting that the Fed is done raising rates, for now………

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