The GMI fell to 5, and the GMI-R is now at 70%. There were 351 new lows and 133 new highs in my universe of 4,000 stocks on Friday. Meanwhile, the Daily SPY Index has turned negative even as the QQQQ remains in the 46th day of its current short term up-trend. 10% of the Nasdaq 100 stocks rose, somewhat better than the 3% of the S&P 500 and the Dow 30 stocks. But the Worden T2108 indicator is now 42%, the lowest level since it topped at 82% on October 5th. This pendulum of the NYSE stocks is now heading towards bearish territory and does not typically bottom out until it declines to below 25%. Nine stocks from the IBD 100 list published on October 15 hit new highs on Friday: FMCN,BIDU,CTRP,CLB,ABB,TEF,HDB,HMSY,SYNA. But when I look at the industries represented in the new low list, I am struck by the major weakness in housing, bank and apparel stocks. How long can the techs buck these trends? I am still holding QLD, but will sell out if the GMI falls below 3.
IBD
GMI: 6; GMI-R: 10; 17 IBD100 stocks at new highs
The GMI is at the maximum of 6 and the GMI-R is at 100%. There were 326 new highs and 85 new lows in my universe of 4,000 stocks on Wednesday. 83%-93% of the stocks in the Nasdaq 100, S&P500 and Dow 30 indexes advanced. Seventeen of the stocks on the IBD100 list from October 15 hit a new high: MA,HDB,ATW,CMG,POT,RIO,SYNA,SID,SDA,FMCN,GOOG, AAPL,AIRM,MBT,ABB,TEF, and PAY. Wednesday was the 44th day of the current QQQQ short term up-trend. I am mainly in the QLD and holding stocks on which I have written calls.
GMI: 6 (of 6); GMI-R: 10 (of 10); Riding the up-trend; IBD 100 winners
The GMI returned to a maximum reading of 6 and the GMI-R is now 100%. There were 377 new highs and 78 new lows in my universe of 4,000 stocks on Monday. Monday was the 42nd day in the current QQQQ short term up-trend and I have a large position in the QLD, which mimics the QQQQ. I am also writing covered calls again on rising IBD 100 stocks. I pay attention to the movement of the market and ignore the pundits and the news. When a car is heading towards me I don’t argue with it or complain that it is not supposed to be there. I must react to what is occurring. Similarly, I must ride the current market up-trend until it changes. And we are approaching the time of the year (November to April) when most market gains have occurred…….
One third of the stocks on the IBD 100 list published on October 15 hit a new high on Monday. Among these, the largest gainers were: FMCN, FTK, EDU, DSX, DRYS, VIP, CTRP, HDB, CMED, and RIO. These ten stocks each rose 4% or more on Monday. Note that while 33% of the IBD100 stocks from October 15 hit a new high, only 8% of the Nasdaq 100 stocks and 7% of the S&P 500 stocks did so. Who said that stocks play dead after they appear on the IBD100 list???!!
See my disclaimers below.