Dr. Wish

The GMI is at +4.  While there were more than 100 new highs in my universe of 4,000 stocks, there were few successful 10 day new highs (stocks that hit a new high ten days ago and closed higher on the Monday than they did ten days earlier).  Failed new highs are a warning sign of a weak market.  Only 22% of the Nasdaq 100 stocks rose, along with 35% of the S&P 500 stocks and 17% of the Dow 30 stocks.  Only 30% of stocks are in a short term up trend, the lowest since March 10.  Only 49% of stocks closed above their 10 week averages.  The GMI-S fell to 25, indicating considerable weakness in my short term market indicators.  None of the four short term indicators for the DIA are positive.  Monday was the fourteenth day (U-14) in the current short term up trend in the QQQQ…….

I am starting to lighten up on my longs.  A few more days down will turn my indicators decidedly negative. 

Please send your comments to:  silentknight@wishingwealthblog.com.

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…

The GMI remains at +4 and in danger of falling again today if we have fewer than 100 successful ten day break-outs.  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.

Please send your comments to:  silentknight@wishingwealthblog.com.