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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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.
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