The market weakened a little but the up trend is intact. The GMI remains at +6. 74% of the stocks that hit a new high 10 days ago closed higher on Tuesday than they did 10 days earlier. There were 372 new highs in my universe of 4,000 stocks, a high number but less that the 500+ the prior two days. 56% of stocks are now in a short term up trend and 77% closed above their 10 week averages. Only 32% of the Nasdaq 100 stocks rose, along with 44% of the S&P 500 stocks and 54% of the Dow 30 stocks. Only 23% of the stocks that have doubled in the past year hit new highs on Tuesday. Still, 35% of stocks are within 5% of their yearly highs. Tuesday was the fourth day (U-4) in the QQQQ up trend…..
Among the stocks that hit a new high on Tuesday, have risen at least 60% the past year and had triple digit earnings growth the most recent quarter are: DO, AKAM, HSVLY, VTS, FCX, PDC, CBG,BTJ,PONR,ATHR,SIGM,TRID,TLM, AAPL, LDSH, STMP, SUN, HANS, ISRG, ARD, CNQR, MDR, ESV, JOYG. Many of these stocks have been leaders for weeks. I always buy into strength (I own 2 of these stocks). Strength begets strength………………………..
The GMI remains at +6. There were 541 new highs and only 12 new lows in my universe of 4,000 sotcks on Monday. Between 59%-64% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes advanced. 76% of the stocks that hit a new high 10 days ago closed higher on Monday than they closed 10 days earlier. More than one half of stocks (53%) are now in a short term up trend and 78% closed above their 10 week averages. 37% of the stocks that have doubled the past year hit a new high on Monday. An amazing 35% of all stocks are within 5% of a yearly high and oly 3% are close to a new low. Monday was day 3 (U-3) of the QQQQ up trend.
The short term trend of the market has turned up and is now in synch with the longer term up trend. The GMI is at +6. there were an amazing 505 new yearly highs among the 4,000 stocks in my universe. The last time we had over 500 new highs was on July 28 (522 highs), just before the August 2nd top in the QQQQ. At that time, however, 81% of stocks were above their 10 week averages, compared with 76% on Friday and 57% were in a short tern up trend compared with 49% on Friday. Moreover, last July the QQQQ had been rallying for about a month, while the QQQQ short term trend just broke out again last week. Friday was the second day of the new short term up trend (U-2). The leaders have been very strong. 82% of the stocks that hit a new high ten days ago closed higher on Friday than they closed ten days earlier. And 80% of the stocks that have doubled in the past year closed above their 30 day averages and 31% hit a new high on Friday. Eight times as many stocks are within 5% of a new high than a new low (33% vs. 4%). With this turnaround, the QQQQ has now closed above its 10 week average for nine consecutive weeks.
The WPM reflects this huge turnaround. All five indexes closed above their 30 day averages, and 61% or more of their respective component stocks have now closed above their 30 day averages. All indexes remain above their longer term 30 week averages, but many more of their stocks (60%- 77%) also closed above their 30 week averages.
A lot of this rally is said to be predicated on the hope that the Fed will soon stop raising interest rates. I want to bring to your attention, however, the fact that speculators seems to be betting on higher rates. The short term interest rate indicator that we have posted a few times has again broken out to the up side. Why is the smart money betting on still higher rates? This market could reverse down quickly if the hopes for a slowing Fed fail to materialize……..
So what are some of the leaders that are hitting new highs? I found 38 stocks that hit a new high on Friday, that doubled in the past year and that had triple digit earnings gains the most recent quarter. Here they are: DO, AKAM, HSVLY, MSCC, ASTE, VTS, ATI, FCX, PDC, GOOG, GG, CRM, SPSS, TRID, AAPL, STMP, UBB, SUN, BOOM, ARD, TRAD, MDR, JOYG, FCL, VPI, SIRF, BTU, NVDA, PKS, ENG, ANST, CIG, WDC, KEP, AIR, TWIN, FLSH, ALY. I own two of them. If I were looking for future winners, I would check out this list of winners.