The QQQQ remains in a nice up-trend and I am long stocks. We are in the period when few pundits believe the rally is justified. That is okay with me. I just ride the train as it goes in the right direction, until it turns. Two stocks I have been riding, PEGA and SXCI, have had nice break-outs. However, I still prefer to concentrate in the ultra QQQQ ETF, QLD.
General Market Index (GMI) table
Up-trend in place; Time to be long; 9 IBD100 stocks at new highs
The market up-trend is in place and I am almost 100% invested on the long side in my trading IRA. I am also largely invested in mutual funds in my university pension. This is the time to ride the train and not to fight it. No one knows when the up-trend will end. The idea is to ride it and have sufficient stop losses in place to exit if the trend should convincingly reverse. The GMI is at 5 of 6, having been at 6 at Thursday’s close. There were less than 100 new highs (74) in my universe of 4,000 stocks on Friday, bringing it down to 5. I suspect we will be back to 6 this week. Meanwhile, 84% of the Nasdaq 100 stocks had their MACD close above its signal line, a nice show of strength. The Worden T2108 Indicator is at 88%, near the top of the range it typically reaches. But it can stay above 80% for months.
Up-trend continues; But T2108 near peak; 25 stocks at all-time highs
The up-trend continues but the T2108 is at 85%, about as high as it gets. That does not mean we will get a decline, for it can stay above 80% for weeks. I went to an investor’s group meeting this weekend and was amazed to find that many sophisticated investors are resisting this rally. About two thirds expected an imminent market decline. I am incredulous that people would rather fight a trend than ride it. If one puts in stop losses to control risk, why not ride the market until it falters. No one can consistently know when a trend will end. Stop guessing! Meanwhile, the GMI