While all of my indicators remain positive, my group of nine high priced leaders has been weak. Only 4 of them remain within 5% of their 52 week highs. Four are around 10% or more below their yearly highs (CMG, BIDU, GOOG, FFIV). Some of the speculative commodities are also weakening. I am more cautious when the leaders are weak. I remain largely in cash in my trading account. Will “sell in May and go away” work this year?
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21st day of QQQ short term up-trend; RWB rocket stock: LULU
One of my readers keeps writing about his profits in LULU. Note that LULU is an RWB rocket stock and appeared in the New America column in IBD (NA in chart) twice. I wrote about LULU in February when it was around 73. Click on weekly chart to enlarge. While LULU has been strong, its daily stochastic appears to be headed down from overbought territory. I therefore would not buy it today.
