Weak ending for the week
The downward roller coaster ride continued
Value Line Index-- Contains 1700 stocks so I think it is a better representation of the market than the S&P 500 or the even narrower Dow 30 -- down 4 days out of 5
- Although we are up by 5.75% since the beginning of the month we are down 6.54% for the last month
- 80% Barchart technical sell signal
- Closed Friday below its 20, 50 and 100 day moving average
- Barchart Trend Spotter (tm) sell signal
Barchart Market Momentum -- Contains approximately 6000 stocks -- Percentage of stocks closing above the Daily Moving Averages (DMA) for various time frames -- Needs to be above 50% for me to get excited -- I'm not excited this week
- This week only 41.57% closed above their 20 DMA, only 40.33% closed above their 50 DMA, only 33.59% closed above their 100 DMA
- Last week over 52.76% closed above their 20 DMA, only 43.43% closed above their 50 DMA, only 38.40% closed above their 100 DMA
- Last month over 72.26% closed above their 20 DMA, only 39.32% closed above their 100 DMA, over 50.57% 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 -- Short term more lows than highs
- 1 month new highs/new lows -- 513/550 = .93
- 3 month new highs/new lows -- 276/301 = .92
- 6 month new highs/new lows -- 1.28
Summary and Investment Strategy -- All 3 yard sticks were negative in the short term this week. I will continue to trim stocks from my portfolios that are not beating the market. If I find some bond funds or stocks fighting the trend I might average in but I'm not in a mood to bottom fish. Time to use extreme caution.
Disclosure: No positions in the stock mentioned at the time of publication
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These hot movers could rise by double digits in coming months.
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