Stock Market Technical Indicators & Analysis
The GMI remains at 2 (of 6) and the GMI-R at 4 (of 10). The Worden T2108 indicator is 56%, in neutral territory. Three IBD100 stocks hit a new high on Friday: CWT, EBS and SHEN. I own CWT and successfully wrote December puts on EBS in early December.
Thursday was the 8th day of the current QQQQ short term up-trend. The GMI and GMI-R remain unchanged, at 2 and 4, respectively. There were 11 new highs and 40 new lows in my universe of 4,000 stocks on Thursday. Four of the new highs were on some of my IBD100 lists from the past year: DLTR, CWT, SHEN and THOR. These stocks may be among the new market leaders if this up-trend holds. Meanwhile, options expire on Friday, and I believe that all of the cash secured puts I sold will expire worthless, and profitable for me.
The markets continue to improve. The QQQQ sort term up-tend has completed its 7th day. The Worden T2108 indicator (58%) is well out of over-sold territory, but still far from being in over-bought territory (>70%). The GMI and GMI-R remain at 2 and 4, respectively. It is important to watch what the market is doing and to tune out everything else.
This daily chart shows that the homebuilders ETF, XHB, is starting to recover. It is above its 30 day average (red line) and the 10 day average (dotted line) is now above its 30 day average. This is the first time these technicals have looked so good, since the rise last August and September. (About a week ago I sold cash secured Dec. 12.00 put options on XHB.) The short term trend for homebuilders has changed to up, at least for now……..
