Market creeps up
My weekly analysis of how the market really did and how I will invest in the coming week
I use technical factors that I mine from BarChart and use the same approach every week so I can have a consistent view of the market.
First I see what the Value Line Index did. I like the Value Line Index because it uses 1,700 stocks, making it much broader than the S&P 500 or the narrow Dow 30. Short-term improvement this week.
- Index closed at 2184.48 -- up for the week by .30% and has had a 8.93% price appreciation for the last 65 days
- 9 of Barchart's 13 technical indicators signal buy for a 64% overall buy rating
- Short term rating 80%
- Mid term rating 75%
- Long term rating 67%
- Trend Spotter (TM) is still a sell but weakening
- The Index is almost back to its high for the year of 2239.69 made on 10/19
BarChart market momentum looks at what percentage of stocks closed above their daily moving averages for various time periods, and covers nearly 6,000 stocks. The majority of the stocks closed above their DMA for all 3 time periods reviewed.
- 20DMA -- 62.83% closed above
- 50DMA -- 61.42% closed above
- 100DMA -- 69.34% closed above
The ratio of stocks hitting new highs to new lows for various time periods -- 1.0+ bullish, 1.0 neutral, under 1.0 bearish -- Ratios for all 3 time periods show a positive market movement.
- 20 day new high/new low ratio -- 857/465 = 1.84
- 65 day new high/new low ratio -- 433/197 = 2.20
- 100 day new high.new low ratio -- 385/123 = 3.13
Summary: Analysis of all 3 indicators I use show a market that although almost flat for the current week is showing improvement and is about to break back through it's previous high for the year. I will trim stocks that do not maintain a closing above their 50 DMA and not be afraid to replace them this week. I'll stay fully invested.
Wall Street Survivor results: The 8 Top Stock columnist that give individual stock recommendations maintain model portfolios of those recommendation on Wall Street Survivor for a little friendly competition. The S&P was up .06% for the month and 5 of our 8 contributors have beaten that return. First place goes to Tobin Smith with a return of 3.97% and I came in third with a 3.19% return for the month.
Disclosure: I do not hold any positions in the stocks in my Wall Street Survivor portfolio.
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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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