GMI: 6; Dec or Jan top not unlikely

The GMI is still 6 and all of my indicators are positive. Gmi1124  Is a New Year’s rally shaping up? But what do Dec 11, 2000, Dec 6, 2001, Dec. 2, 2002, January 20, 2004 and Dec 15, 2004 have in common?  They were all peaks in the QQQQ!  So before we jump on the New Year’s Rally bandwagon, maybe we should be open to the possibility that a major market top can form in December or January.  In fact, January 11, 2006 was a peak in the QQQQ this year (at 43.31) that was not exceeded until a few weeks ago on November 9, after reaching a low of 35.54 on July 18 (an 18% decline from the January peak).  A December or January top is therefore far from unlikely, especially in an atmosphere of frenzied bidding up of IPO’s and a growing number of people with stock market profits betting on a New Year’s rally…………

Meanwhile, Friday was a terrible day for the Nasdaq 100, with only 22 of the 100 stocks advancing, the lowest number since November 1.  35% of the S&P 500 stocks rose on Friday along with 23% of the Dow 30 stocks.  While only 12% of the Nasdaq 100 stocks rose on November 1, that was two days before the latest push up began.  Friday was the 69th day in the current QQQQ up-trend.  Stay tuned……..Blogdisclaimer

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