Market flat but not out

A weekly analysis of how the market reacted in the past week

By Jim Van Meerten Nov 30, 2009 11:00AM
I'm not real happy with the way the market acted last week. Each week, I try to step back and look at which way the market trended -- and this week wasn't very good. I use BarChart to find my analytics and here's how they went this past week.

Value Line Index - 1,700 stocks, so its broader than just the Dow 30 or S&P 500
  • The index was actually flat and unchanged for the week
  • BarChart technical indicators - 32% sell with only 3 buys, 3 holds and 7 sells
  • Index trending below its 20 and 50 day moving average but still above its 100 DMA

BarChart Market Momentum - 6000 stocks - percentage of stocks trading above its Daily Moving Average - overall very weak

  • 20 DMA -- only 47.44% above
  • 50 DMA -- only 44.40% above
  • 100DMA -- 64.49% above

Ratio of stocks hitting new highs to new lows for various periods -- 1.0+ bullish, 1.0 neutral, under .99 bearish -- bearish this week

  • 20 day new high/new low ratio -- 242/876 = .28
  • 65 day new high/new low ratio -- 113/427 = .26
  • 100 day new high/new low ratio -- 106/223 = .48

Summary - Market didn't perform in a positive manner and the 3 previous weeks poor performance caught up with the numbers -- Middle East credit crisis could cause concern. Please act defensively.

 

Wall Street Survivor results - Those who post stock recommendations to Top Stocks have a little friendly competition going on Wall Street Survivor, and month to date Anthony Mirhaydari is the leader with a 30.37% return. That's way ahead of my month to date return of 7.35% but I still managed to beat the market's 5.34% return. I sold Sierra Wireless (SWIR) because it failed to maintain price momentum above its 50 day moving average. I won't add a position today until I see how the market digests this Middle East credit crisis.

 

Disclosure: I do not hold any positions in the stocks I recommend on Top Stocks

 

Jim Van Meerten is an investor who writes about financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

123
123 rated 1
273
273 rated 2
482
482 rated 3
661
661 rated 4
635
635 rated 5
639
639 rated 6
619
619 rated 7
489
489 rated 8
277
277 rated 9
166
166 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ATVIACTIVISION BLIZZARD Inc10
BIDUBAIDU Inc10
CTSHCOGNIZANT TECHNOLOGY SOLUTIONS10
LUVSOUTHWEST AIRLINES CO.10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.