Market flat but not out
A weekly analysis of how the market reacted in the past week
Value Line Index - 1,700 stocks, so its broader than just the Dow 30 or S&P 500
- The index was actually flat and unchanged for the week
- BarChart technical indicators - 32% sell with only 3 buys, 3 holds and 7 sells
- Index trending below its 20 and 50 day moving average but still above its 100 DMA
BarChart Market Momentum - 6000 stocks - percentage of stocks trading above its Daily Moving Average - overall very weak
- 20 DMA -- only 47.44% above
- 50 DMA -- only 44.40% above
- 100DMA -- 64.49% above
Ratio of stocks hitting new highs to new lows for various periods -- 1.0+ bullish, 1.0 neutral, under .99 bearish -- bearish this week
- 20 day new high/new low ratio -- 242/876 = .28
- 65 day new high/new low ratio -- 113/427 = .26
- 100 day new high/new low ratio -- 106/223 = .48
Summary - Market didn't perform in a positive manner and the 3 previous weeks poor performance caught up with the numbers -- Middle East credit crisis could cause concern. Please act defensively.
Wall Street Survivor results - Those who post stock recommendations to Top Stocks have a little friendly competition going on Wall Street Survivor, and month to date Anthony Mirhaydari is the leader with a 30.37% return. That's way ahead of my month to date return of 7.35% but I still managed to beat the market's 5.34% return. I sold Sierra Wireless (SWIR) because it failed to maintain price momentum above its 50 day moving average. I won't add a position today until I see how the market digests this Middle East credit crisis.
Disclosure: I do not hold any positions in the stocks I recommend on Top Stocks
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With Europe mired in recession, China faltering, commodities declining and stocks looking vulnerable, investors seeking safety will look to the greenback.
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