Market ends the year strong
It appears that the upward trend will continue through January.
Value Line Index -- 1,700 stocks -- seems bullish
- Down 1.20% for the week
- Up 7.01% for the month
- Up 57.95% for the year
- Closed above its 20, 50 & 100 Day Moving Averages
- Buy rating on 11 of Barchart's 13 technical indicators for an overall Buy rating of 88%
Barchart Market Momentum -- approximately 6,000 stocks -- percentage of stock closing above their daily moving averages for various periods -- majority closed above their DMAs
- 20 DMA -- 69.73% closed above
- 50 DMA -- 74.14% closed above
- 100 DMA -- 72.75% closed above
Ratio of stocks hitting new highs to new lows for various periods -- above 1 bullish, 1 neutral, below 0.99 bearish -- This week still bullish
- 20-day new high/new low ratio -- 1056/361 = 2.93
- 65-day new high/new low ratio -- 518/138 = 3.75
- 100-day new high/new low ratio -- 421/104 = 4.05
Summary & Strategy -- The market ended the year on an upward trend, and I see no reason that the trend won't continue through January. During the coming week I'll trim any stock that doesn't maintain a price level above it's 50 DMA and feel confident that I can replace it with a new position.
Copyright © 2014 Microsoft. All rights reserved.
The company plans to close stores and lay off employees, and says it needs to make some deeper changes.
VIDEO ON MSN MONEY
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.