General Market Index (GMI) table

I have added two new books to those posted on the lower right of this page.   I only post books that I find have really added something to my trading success.   The one on exits, by Alan Ellman, is a third in his series on writing covered calls.   If you want to learn how to make money using this conservative options strategy, check out Alan’s books and his very educational website, listed to the right.   The other book, by   Mark Minervini, is an excellent piece on how to pick super performing growth stocks.   When William O’Neil’s protege and great trader, David Ryan, endorses a book, I listen.   Mark has walked the talk and I always tell my students to study the works written by those who made a fortune trading. Mark relies on the same stage analysis I have been writing about.   He also quotes amply from my guru, the great trader,   Jesse Livermore. Mark’s book is worth reading again and again. If you click on these books on my site to order, my webmaster son (and I) would be grateful for the small contribution to his livelihood…

I was talking to Judy about some IPO stocks that came up in a scan I ran.   One of them, RGLS, she had noticed a while ago but failed to buy. ” I can’t buy everything I like,” she said.   Anyway, RGLS, is 71% owned by insiders and Goldman Sachs Group is an institutional holder. We probably should research this company, which has already doubled since coming public last October.   Beware, however, it has no earnings, yet, just a lot of drugs under development. Why are people buying it?   Must be a mistake. But Judy also likes the concept–microRNA technology.   Check out this weekly chart and research the company.

I can’t end on a stock that makes no money.   REX came up in my new high and good recent earnings scan. Its earnings last quarter were up triple digits! Check out this weekly chart. REX just broke through its green line top to an all-time high.

The GMI signal has changed to Buy and I began to buy TQQQ on Friday.   One more up day will turn the QQQ short term trend up.

The GMI remains on a Sell signal since 6/21.   IBD still sees the market in a correction. It has been 13 days since my QQQ short term trend indicator turned down.   The last time we had a longer short term down-trend in the QQQ was the one that lasted 33 days and ended last November. No one knows how long this down-trend will last, or if the longer term trend will turn down. With the second quarter mutual fund window dressing period now over, it remains to be seen if the recent bounce is   over.   I suspect it may be, although the Worden T2108 Indicator did fall mid-week to a low of 13.1%, a very oversold level where the bottom of a decline sometimes occurs. T2000   now computes T2108 throughout the trading day, so I can get intraday readings for T2108,   instead of just the daily closes. Even AAPL bounced on Friday, a sign that even the weakest stocks may have finally participated in the   rebound.   If the decline resumes on Monday, it could be rather steep.   I should be ready to respond, but must not anticipate a move that may not materialize. I am a trend follower……..

Meanwhile, INVN, another stock that my wise stock buddy, Judy, likes (and I own) had a high volume advance on Friday. INVN has exciting motion sensor technology that is important   to smart phones and rumors are flying whether their products will be contained in a possible new, cheaper iPhone.   Look at this RWB daily Guppy chart with its beautiful high up-volume (green) spikes. Somebody big is buying.