GMI and GMI-R back to maximum values; past winners bouncing


There were 381 new 52 week highs and only 24 new lows in my universe of 4,000 stocks on Wednesday.   Wednesday was the 46th day of the QQQQ short term up-trend. With so many daily highs, and the GMI at 6, it looks to me like it is possible to go long stocks near new highs again.   It will be interesting to see whether NFLX will hold on to its post-earnings rebound.   Both AAPL and GOOG did not.   I am still more cautious than usual, given my concerns about the municipal bond crisis.   See this interview with George Soros. AGO, the municipal bond insurer,   has been a good short, but has declined for 7 straight days.   A lot of the stocks that I follow are now rebounding from   oversold levels (CAVM, RVBD, PANL, APKT, CF, NTAP, VIT, BHP, ARMH BIDU, TDSC, OPEN, KKR). The key is whether they can climb back above their recent peaks.   A strategy I like is to buy a small amount of a rebounding stock and to place a stop loss order below its recent support level. In that way, I can participate with minimal risk if it resumes its decline.

4 thoughts on “GMI and GMI-R back to maximum values; past winners bouncing”

  1. hey dr wish,

    hope your enjoying the day off and have power! i was looking at armh options for the month of march and i noticed something unusual. the open interest for 26 puts is 1024 with a daily volume of 1044 while the call open interest is only 118 with a volume of 54 (yahoo finance). do you think the huge amount of open puts vs calls will put pressure on the price?


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