Solid market gains
Look past the headlines and evaluate the market with data
Value Line Index -- Contains 1700 stocks so it's much broader than the S&P 500 or the very narrow Dow 30 -- Positive price momentum
- Up 3 days out of 4 for a net gain of 1.16% last week
- If the Index were a stock it would have an over all 88% Barchart buy rating, hitting buy signals on 11 of 13 technical indicators
- Hit new highs in 12 of the last 20 trading session and 3 for 5 recently
- 30 day price appreciation of 6.91%
- Tracking above its 20, 50 and 100 day moving averages
Barchart Market Momentum -- Approximately 6000 stocks -- Percentage of stocks trading above their 20, 50 and 100 day moving averages -- Above 50% always good -- Market improving
- 20 DMA -- 64.97% closed above -- 65.03% last week
- 50 DMA -- 82.49% closed above -- 79.08% last week
- 100 DMA -- 81.61% closed above -- 78.77% last week
Ratio of stocks hitting new highs to new lows for various periods -- 1.0+ bullish, 1.0 neutral, below .99 bearish -- Bullish for all 3 time periods
- 20 day ratio of new highs/new lows -- 1362/501 = 2.72
- 65 day ratio of new highs/new lows -- 856/147 = 5.82
- 100 day ratio of new highs/new lows -- 794/109 = 7.28
Next week's investment strategy -- A rising tide floats all boats. It's easier to have a portfolio of winners if more than 50% of the stocks are rising than it is to find winners when more than 50% of the market is sinking. Just a little common sense. Next week I'll prune out the stocks that aren't maintaining a price above their 50 day moving averages and won't be afraid to replace them with rising stocks.
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Stocks are facing some serious resistance as the bears tear into the market's respite.
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