The GMI and GMI-R are still zero. This means that most stocks are in a down-trend. I have therefore been on the sideline for most of the decline. There were 22 new highs and 174 new lows in my universe of 4,000 stocks on Friday. The Worden T2108 indicator stands at 41%, in the neutral range. The markets have been in a tight range since the January decline, going back and forth. At the same time, a small group of sectors and stocks have been rocketing up. It seems to me it may be prudent to nibble a little at these strong performers.
I therefore ran a scan using TC2007 to uncover IBD100 stocks that have been incredibly strong throughout the general market’s decline. The following stocks from the IBD100 lists I have monitored over the past year hit a new high during the past week and meet my strict technical criteria for rocket stocks: MOS, MTL, CF, SID, POT, PCLN, CMED, RRC, PRXL, OIL, SWN. While not an IBD100 stock, I also like FDG, which this monthly chart indicates has had a high volume break-out to a new all-time high, breaking its peak from September 2005. In fact, this monthly chart of FDG looks like a three year cup-with-handle formation. My smart stock picker friend, Judy, is interested in RIMM, which just bounced off of its 30 week average. (She, of course, started buying it in the low 80’s!) I may nibble at some of these stocks and place close stops in case they reverse. Many of these stocks have rich premiums on their March call options. I may buy some shares and immediately write March calls.