The GMI rose to 5 and the QQQQ is now in its 8th day of an up-trend. There were only 71 new highs in my universe of 4,000 stocks, leaving only the GMI new high indicator negative. Another up day could give us the 100 new highs needed to turn the GMI to the maximum of 6. With the GMI at 5, I am content to own QLD and to hold a number of stocks on which I have written covered calls. The QQQQ is back above its 10 week average, a very positive sign.
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GMI: 3 and close to 2. Only techs positive
The GMI fell to 3 and could go to 2 with a decline on Tuesday. Time to be defensive, not a hero. Only the Nasdaq 100 (QQQQ) is holding up.
GMI: 4; Critical week coming
The GMI is back to 4 and I am worried about the coming week. Too many of my indicators could easily turn negative with a couple of down days. The IBD Mutual Fund Index is back below its 50 day average and has thus turned negative in the GMI. The QQQQ is also back below its 10 week average. If it does not regain this average this week, I will go to cash again. Stay tuned….