IBD

GMI: 4; GMI-S: 50; Going long

@ 12:36 am

The GMI rose to 4 for the first time since February 26.  The GMI-S has also recovered to 50; one half of the four short term indicators for each of four index ETF’s (noted in table) are now positive.  Gmi0320 There were 155 new highs in my universe of 4,000 stocks, the most since February 26, just before the large 416 point drop in the Dow.  On Tuesday there were 73-87% gainers among the Nasdaq 100, S&P 500 and Dow 30 stocks.  34% of the Nasdaq 100 stocks closed above their 30 day averages, up from 13% on March 5 and March 13.  49% of the stocks in my universe have now closed above their 10 week averages. The QQQQ is in the 16th day of its current short term down-trend.  I have closed out all of my shorts and begun to go long.  Sixteen stocks in the latest IBD 100 stock list hit a new high on Tuesday:  SIMO,WFR,SSYS,DECK,CCK,PCAR,BWLD,PCP,ROCM,FDS,MIDD,

WCG,DWSN,GLP,BDC,BTJ.  I own some of these.

See my disclaimers at the bottom of yesterday’s post.

GMI: 2+; Signs of an up-turn?

@ 9:25 am

The GMI rose to 2+ and it looks like the market is on the verge of a turn.  53% (9/17) of the stocks that hit a new high 10 days ago closed higher yesterday than they did 10 days earlier, suggesting that stocks hitting new highs are holding their own.  Since this stat is based on only 17 stocks, I hesitated to call this indicator positive.  Gmi0319_2 There were 113 new highs in my universe of 4,000 stocks, the most since February 26.  The GMI-S has moved up to 25.  My IBD mutual fund index also is very close to turning positive.  We maybe getting the end of first quarter/new earnings release bounce I wrote about yesterday.  While the QQQQ remains in a down-trend, I am buying selective growth stocks, rather than shorting the index.  I am also writing covered calls for income in my IRA.

Blogdisclaimer

GMI: 1; IBD100 performance; Bounce coming?

@ 12:01 am

The GMI remains at one.  On Friday, 28-37% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes advanced.  Gmi0316 There were only 71 new highs in my universe of 4,000 stocks. The QQQQ is in its 14th day of a down-trend and has closed below its 10 week average for three weeks.  Only 23 % of the Nasdaq 100 stocks closed above their 30 day averages, up from a low of 13% on March 13. 

The IBD 100 stock lists are doing somewhat better than the Nasdaq 100 stocks.  More of them (7) hit new highs on Friday and a larger percentage closed above their 30 day averages.  Ibdperf0316

While the markets are in down trends, I am somewhat reticent to short stocks.  I have to suspect that with the end of the first quarter coming and earnings due in April, we should get another  bounce soon.

See my disclaimers at the bottom of my prior post.