Market ends the week with a whimper
Friday was an up day but I can only hope it will be an up week coming
Value Line Index -- Contains 1700 stocks so its broader than the S&P 500 or very narrow Dow 30 -- recovering but still weak
- Index down .11% week over week
- Index down 5.70% for the last month
- Barchart short term 20% sell -- overall 1 buy, 4 holds & 8 sells
- Trading below its 20, 50 & 100 day moving averages
- 14 Day Relative Strength Index 45.69% and rising -- a bright spot
Barchart Market Momentum - Contains approximately 6000 stocks -- Percentage of stocks trading above their Daily Moving Averages for various periods -- recovering slightly
- Friday only 38.16% close above their 20 DMA, over 51.15% closed above their 50 DMA, only 44.91% closed above their 100 DM
- Last Week only 32.70% closed above their 20 DMA, only 49.22 closed above their 50 DMA, only 52.52% closed above their 100 DMA
- Last month over 79.21% closed above their 20 DMA, over 72.16% close above their 50 DMA, over 52.33% closed above their 100 DMA
Ratio of stocks hitting new highs/new lows for various time frames -- 1.0+ bullish, 1.0 neutral, below .99 bearish -- still bearish
- 1 month new highs/new lows -- 216/666 = .32
- 3 month new highs/new lows -- 127/323 = .39
- 6 month new highs/new lows -- 84/255 = .33
Summary and Investment Strategy -- The week looked like we may have found a bottom. I'll continue to trim from my portfolios stocks that have a downward momentum and I might add back new stocks if the Barchart Market Momentum keeps improving and the Value Line Index gets a 14 day Relative Strength Index above 50%.
Disclosure: No positions mentioned at the time of publication
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3 stocks will be in the spotlight Thursday as investors try to make sense of the numbers from the sector.
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