Momentum of the Value Line Index - I use this index because it is a broad based index of about 1700 stocks and covers about 95% of the US Stock Market capitalization
- BarChart ranks the Index as a Overall 96% BUY - 12 of the 13 indicators BarChart uses are BUY and only 1 is a HOLD - looks good
- The VLA is trending above its 20, 50 and 100 Day Moving Averages (DMA)
BarChart Market Momentum - this week looks at the direction of the 6000 stocks that traded.
- 78% of the stocks closed above their 20 DMA
- 83% of the stocks closed above their 50 DMA
- 88% of the stocks closed above their 100DMA
- This is stronger than last week's closings and is positive
The ratio of how many stock hit new highs vs. how many hit new lows - any number above 1.0 is positive, below .99 negative
- 20 day ratio - 2222 new highs/ 227 new lows = 9.8 pretty strong
- 65 day ratio - 1563 new highs/ 104 new lows = 15.0 very strong
- 100 day ratio - 1414 new highs/ 91 new lows = 15.5 very strong
Overall it seems like the Stock Market is trending upward and will continue - A BUY CODE GREEN
NOTE: I've been asked why is use 3 different methods that seem to give parallel information. Good Question - It's because each of these 3 methods has some tracking error in them. Example: In one of the worst weeks in the Market last year there were 26 stocks hitting strong new highs on the AMEX. When I examined closely I found that all 26 were inverse ETFs. By using all 3 methods I hope not to get caught off guard by a tracking error in any one of them.
Remember: This Financial Tides is an instructions site that tries to teach you to trust your experience, knowledge, common sense and a good stock screening tool like BarChart to beat the Market on your own