GMI: 4; GMI-S: 81; U-2; New IBD 100 leaders

The market continued to strengthen during the brief pre-holiday session. The GMI is at +4 and very close to +5 when/if the IBD growth mutual fund index turns positive.    The GMI-S is now 81, reflecting strong short term up-trends in the major indexes.  73% of the Nasdaq 100 stocks rose on Monday, along with 72% of the S&P 500 stocks and 83% of the Dow 30 stocks. Gmi0703There were 117 new highs and only 19 new lows in my universe of nearly 4,000 stocks.  13/16 stocks that hit a new high 10 days ago closed higher on Monday than they did ten days ago.  Thus, buying stocks hitting new highs has likely to have been profitable again.  35% of stocks are in an up-trend now, up from 9% on June 20. Monday was the second day in the current QQQQ up-trend.

IBD 100 growth stocks are now out-performing other stocks.  Ibd0703    81% of the IBD 100 stocks from the list on 5/15 advanced, compared with 72% of other stocks.  81% are in a bullish stage 2 up-trend and 81% closed above their critical 30 day averages.  34% of these stocks are now above their closing price on 5/15 when they were listed among the IBD 100.  Eight of these stocks hit a new high on Monday:  OII, EZPW, CLDN, XPRSA, HOC, FORM, LIFC, EXPD (I own one of these).  William O’Neil writes that the first stocks to break out of bases to new highs often become the leaders of a new bull move.  I am watching these stocks very closely….

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GMI: +4; U-1; Looking for longs

The GMI rose to +4 on Friday. The IBD growth mutual fund index is now above its 200 day average and closing in on its key 50 day average. Gmi0630 When these mutual fund managers make money in growth stocks, the odds are good that I can. There were 137 new yearly highs in my universe of nearly 4,000 stocks on Friday.  Friday was the first day in the new QQQQ up-trend (U-1).  The IBD 100 stocks are also coming back.  76% closed above their 30 day averages and 90% are above their MACD signal lines. Ibd0630  29% of the stocks on the IBD 100 list from 5/15 are now higher than they closed on that day. Eight of them hit a new high on Friday:  IBCA, CLDN, LVS, XPRSA, GRMN, HOC, OII, EXPD (I own some of these)……

I am slowly wading into the market on the long side.  It remains to be seen whether this rally will hold.

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GMI: +1; Too early to tell; 6 IBD 100 new highs

The GMI rose to +1, but it is too early to tell if this reversal will hold. Two other indicators are too close to call (?).  Next week should provide more clarity, after end of quarter window dressing is over and new earnings are anticipated.  96-100% of stocks in the QQQQ, SPY and DIA indexes rose on Thursday.  There were 96 new highs and 48 new lows in my universe of nearly 4,000 stocks.  Gmi0629 There were 6 new highs in the IBD 100 list from 5/15:  GRMN, EXPD, LVS, CLDN, LIFC, OII.  If this turn is for real, these stocks may be among the new leaders.

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