I guess we all know why AAPL has been weak. See the beauty of technical analysis? The bad news was evident in the stock movement long before it was revealed to the rest of us….
The GMI remains at 5, as the major indexes recovered. 72% of the Nasdaq 100 stocks rose on Wednesday, along with 84% of the S&P 500 stocks and 97% of the Dow 30 stocks. There were 306 new 52 week highs on Wednesday and only 7 new lows in my universe of 4,000 stocks. Still, the QQQQ remains in a downtrend; Wednesday was the 5th day of the current down-trend. The GMI-S is back to 50, but none of my short term indicators for the QQQQ are positive. We will need to see the end of the 4th quarter mutual fund "window dressing," before we know if this rally is for real. For now, I remain cautious and skeptical.
An interesting difference in strength occurred on Wednesday in the Nasdaq 100 stocks and the IBD 100 stock lists that I follow. 90% or more of the IBD 100 stocks rose on Wednesday, compared with 72% the Nasdaq 100 stocks. More of these IBD 100 stocks hit new highs and they were more likely to close above their 30 day averages. It sure looks like the fast growing type of stocks selected for the IBD 100 lists are outperfoming the Nasdaq 100 stocks right now. Growth stock window dressing by the mutual funds who want to include the winners in their end of year portfolio statements? What a great way to look smart, given that the funds fail to disclose the price and date of their acquisitions during the prior quarter….