The rally continues, with 7 new highs and 106 new lows in my universe of 4,000 stocks on Thursday. The T2108 is now out of oversold territory, at 21%. The GMI-R is now up to 2 (of 10). The QQQQ completed the 18th day of its short term down-trend. This rally is still occurring within a major long term down-trend. Two stocks that I own are AMZN and NFLX.
Month: March 2009
QQQQ down-trend continues; Amazon kindles an impressive gain
There were 3 new highs and 106 new lows in my universe of 4,000 stocks on Wednesday. The QQQQ completed the 17th day of its short term down-trend. It would have to rise a lot more to begin a new up-trend. Still, I cannot resist buying an occasional strong stock during a counter trend rally. One stock I own a little of is AMZN, a stock championed by Judy.
AMZN had a huge gap up on January 30th when it beat earnings estimates, then consolidated for several weeks. (Looks like a head and shoulders bottom?) Today, AMZN appears to have broken out again. AMZN has a great new product in the Kindle 2 digital reader.
T2108 calls bounce again! Will rally hold?
The T2108 was in single digits for six consecutive days before Tuesday. Anytime this index is below 10, the market is oversold and it is a good time to look for a rally. There were 6 new highs and 148 new lows on Tuesday in my universe of 4,000 stocks on Tuesday. Tuesday was the 16th day of the current short term down-trend of the QQQQ. It may take weeks before we find out whether Tuesday’s rise will hold. The GMI-R is now up to one (of 10). Perhaps the safest approach for me now is to take on some long positions and buy some puts for insurance, the strategy I described in my prior post.