General Market Index (GMI) table

Blog Post: Day 14 of $QQQ short term down-trend, but 120 US new highs, 82 lows and 27 at ATHs, see these lists, GMI still Red

@ 9:07 pm
GMI2/6
GMI-24/9
T210853%

We are now into the earnings season bounce. Many stocks hit ATHs on Friday. Here are the 16 ATHS on my IBD/MS watch list, sorted by earnings please date. The following subset had a GLB (green line break-out to ATH after a minimum 3 month consolidation) last week: TRV, CAT, CB, IRDM, LW. This list may contain some new market leaders.

 

 

These 11 are not on that watchlist but also hit an ATH:

 

The GMI = 2 (of 6) and remains on a Red signal but IBD has called a new confirmed market up-trend.

 


Blog Post: Day 10 of $QQQ short term down-trend and GMI still Red; $NVO, maker of obesity drug, Wegovy, barrels ahead to close at ATH after recent GLB–60 Minutes story to propel it higher?

@ 7:43 pm
GMI1/6
GMI-23/9
T210837%

On Sunday, 60 Minutes had a feature story about how obesity is being increasingly seen as a medical condition that can be treated by the new generation of drugs for diabetes that reduce weight considerably. These drug injections are very expensive and not covered by most medical insurance for treating obesity. Hollywood stars are most likely able to afford this treatment. However, on Sunday,  60 Minutes announced that Rhode Island will now cover the cost of such drugs for state employees to treat obesity.  NVO’s drug, Wegovy, should benefit from this new breakthrough in insurance coverage and may explain why the stock has been so strong. GLBs have often failed this year but if one bought the GLB of NVO on November 30, one would currently be up +8.5%. This chart specifies the day of the GLB (green line break-out). NVO has closed the year at an ATH (all-time high). LLY is also working on a similar drug and may benefit too.

The GMI is 1 (of 6) and still on a Red signal.

 

Blog Post: Day 1 of $QQQ short term down-trend; GMI=0 and turns Red; Best to hold cash and receive income form money market funds; I agree with this wise quote from Nicolas Darvas

@ 6:00 pm
GMI0/6
GMI-21/9
T210839%

My attempts to nibble at a few things the past few weeks have not worked out. Break-outs have been failing. During past significant market declines I waited to ge back in until the key indexes climbed above their 30 week averages and the average curved up. There was plenty of time to profit once that happened. I leave it to the day traders and gamblers to try to catch brief bounces. I love this quote from the great Nicolas Darvas:

I think this says it all. I will, of course, alert my readers to when the storm clouds have dissipated. With the GMI at 0 (of 6) and Red,  I see no reason to attempt to go long equities now. Happy Holidays to all!!!!!