GMI: 6; Riding QLD

@ 12:01 am

The GMI is still 6.   Only 42% of the Nasdaq 100 stocks advanced on Tuesday, along with 45% of the S&P 500 stocks and 37% of the Dow 30 stocks.   Still, there were 231 new highs and only 20 new lows in my universe of 4,000 stocks.   Gmi1031_1 Only 64% of the Nasdaq 100 stocks closed above their 30 day average, down from 88% on 10/16.   Only 40% of the IBD 100 stocks from 10/16 advanced on Tuesday and only 9 hit a new high–COGO,CELG,BLKB,AXR, JLL, HRT, BLUD, NVEC,

IAAC.   Tuesday was the 52nd day of the current QQQQ up-trend.   During that time the QQQQ has risen 10.4% but the ETF that approximates twice its movement advanced 19.8%.   Once the up-trend was established, it became very comfortable for me to just ride the QLD.

GMI: 6; GMI-S: 94; IBD 100 stock performance; Put/call ratio: .94

@ 12:01 am

The GMI held at 6, but only 14-20% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes advanced on Friday. Gmi1027_1 There were 258 new highs in my universe of 4,000 stocks.  The GMI-S fell to 94, with the weakening of one of the short term indicators for the QQQQ.  Still, Friday was the 50th day in the current QQQQ up-trend and the 11th week that it has closed above its 10 week average.

The IBD 100 stock lists that I have been following did a little better than the Nasdaq 100 stocks on Friday.  Ibdperf102722-33% of the stocks in the four lists below advanced on Friday.  The list from 10/16 had 14 new highs, but only 43% of these 100 stocks closed higher than they closed on 10/16 when the list was published.  The 14 stocks from the 10/16 list that hit new highs on Friday were:  HXM,CELG,DRIV,JLL,GRMN,ROG,WCG,TV,SIM,

CTSH,BLUD,WRLD,HCSG, CSH.

Monday’s IBD says that the put/call ratio from Friday was .94.  As long as there remains such a high amount of pessimism exhibited by the options players, this rally probably has further to go.  Put/call ratios near one are rare and typically occur only after a sustained decline.  This is a rally that traders love to hate…..