The GMI is 3 and the GMI-R is 6. There were 71 new highs and 86 new lows in my universe of 4,000 stocks on Wednesday. Wednesday was the 51st day of the current QQQQ up-trend.
Dr. Wish
GMI: 3; GMI-R: 6; NASDAQ100 weakening; hedging bets, own SOHU
The GMI and GMI-R are unchanged, but the internals are weakening. There were 90 new highs and 81 new lows on Tuesday in my universe of 4,000 stocks. I wrote calls on my growth stock holdings and hold options on DXD. I am waiting for a strong bounce at the end of the quarter in late June to get out of my remaining longs. A close of the QQQQ below 48.56 (now at 49.13) would trigger a short term down-trend in that index. One stock I like and own–SOHU.
GMI: 3; GMI-R: 6; Split market
The GMI fell to 3 (of 6) and the GMI-R is at 6 (of 10). The QQQQ continues to outperform the Dow and S&P500 stocks. This is mainly because the Nasdaq 100 stocks represented by the QQQQ do not contain the financial stocks that are imploding and weakening these other indexes. There were 81 new highs and 85 new lows in my universe of 4,000 stocks on Monday. It remains to be seen whether the weakness in these other stocks will eventually spread to the tech stocks. This is the time to have close stops and to be ready to go to cash and/or short if the GMI breaks down further.