Market action was down
This week's market action was nothing to write home about.
Value Line Index - Contains 1700 stocks so its broader than the S&P 500 or very narrow Dow 30 -- Things didn't happen
- Price down .98% for the 4 1/2 day period
- Price down 2.32% for the last 20 sessions
- 9 of Barchart's 13 technical indicators signal sell for a 64% sell signal
- Relative Strength Index is only 39.22% and falling
- At Friday noon the Index was at 2265.19, that's below its 50 day moving average of 2345.33
Barchart Market Momentum -- Contains approximately 6000 stocks -- Percentage of stocks trading above their Daily Moving Averages for various periods --50% and above is good -- Nothing good here either
- Friday at noon only 28.18% traded above their 20 DMA, only 45.34% traded above their 50 DMA, only 39.99% traded above their 100 DMA
- Last week only 34.95 traded above their 20 DMA, over 50.84% traded above their 50 DMA, only 41.43% traded above their 100 DMA
- Last month over 84.74% traded above their 20 DMA, over 68.44% traded above their 50 DMA, only 49.47% traded above their 100 DMA
Ratio of stocks hitting new highs/new lows for various time frames -- 1.0+ bullish, 1.0 neutral, under .99 bearish -- This indicator is very bearish
- 1 month new high/new low ratio -- 68/1032 = .07
- 3 month new high/new low ratio -- 38/483 = .08
- 6 month new high/new low ratio -- 25/62 = .40
Summary and Investment Strategy -- Market action was negative. I'll keep trimming but not adding positions until I see some technical improvement in the market.
Disclosure: No positions in the stock mentioned at the time of publication
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US markets were able to rally hard and largely trim the day's losses. Meanwhile, a bounce in crude oil could be in the offing.
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