GMI: +4; Housing and utilities weak; in May–go away!

Gmi0413 Last week ended with the GMI still at +4.  Between 59-66% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes rose, but there were only 79 new yearly highs in my universe of 4,000 stocks.  Only 32% of stocks are in a short term up trend.  The QQQQ is in the thirteenth day of a short term up trend (U-13).  With long term interest rates rising, the utilities and housing stocks have been on a steady decline.  Shorting them has yielded easy profits. (No pun intended!)  With May rapidly approaching, it is time to watch for the customary seasonal top after earnings are out.  In May, go away…

GMI:+4; More new lows than highs

The GMI remains at +4 and in danger of falling again today if we have fewer than 100 successful ten day break-outs.  Gmi0412 Between 55-57% of stocks in the QQQQ, SPY and DIA rose on Wednesday.  There were 55 new yearly lows and 46 new highs, an ominous sign.  Only 35% of the 4,000 stocks in the universe I follow are in a short term up trend, the lowest since March 10.  Wednesday was the twelfth day (U-12) in the current short term up trend in the QQQQ.

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GMI falls to +4; Getting defensive

The GMI declined on Tuesday.  Break out stocks are failing.  Only 41% of the stocks that hit a new high ten days ago closed higher Tuesday than they did ten days earlier.  Gmi0411 The Daily SPY index turned negative and the GMI-S fell to 38.  Between 13-23% of the stocks in the QQQQ, DIA and SPY rose on Tuesday.  Only the majority (75%) of the short term indicators for the QQQQ remain positive.  While the short term up trend in the QQQQ is still intact, I am raising stops and becoming defensive………

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