Market still in an IBD correction, but monitoring the GMI and the new high list


According to IBD, the market is still in a correction.   Monday’s gains came on lower volume than on Friday.   The QQQ short term trend will turn up on Tuesday if the QQQ stays level or positive today. The GMI-2, which is more sentivie to short term trends,   is 3, of 6.  In fact, the GMI could turn to 4 with an up day on Tuesday.   The T2108 indicator, at 42%, is well into neutral territory.   I am content to wait for the GMI to rise to 4 before I tiptoe back into the market on the long side. In the meantime I will scan the new 52 week high list for potential leaders to put on a watch list. Among Tuesday’s winners are:   SXL,CELG,QCOR,DLTR,CEPH,ROST,LO.   All of these have recent quarterly EPS increases of 19% or more and ROE of at least 17%.

2 thoughts on “Market still in an IBD correction, but monitoring the GMI and the new high list”

  1. Dr Wish

    I am a bit confused by the indicators you use, so if GMI2 hits 4 and retrace back, are you going to sell the shares you buy on the day it hits 4. T2108 is at 42$, its very high right? should we wait for ideal situation when GM2 is 4 while T2108 is lower to buy, will that ever happen?

  2. T2108 can rise to 80% and stay there for weeks. If GMI goes to 4 I will start buying slowly and only add to my position slowly as prices rise. There is too much bearish sentiment right now so this may be a real bottom.

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