Let's see how the market did using my standard market momentum criteria as found on BarChart:
Value Line Index - an index of 1700 stocks - trending downward but not to panic yet.
- The Index was down 6.26% this week, down 1.74% last week and down 5.31% for the month.
- The Index is tracking below its 20 & 50 day moving average but above its 100 day moving average.
- The Index is off its market high on 10/19 by 9.13%
BarChart market momentum indicators - a review of approximately 6000 stocks - are they trading above or below their daily moving averages -- down but still above the 100 DMA
- 20 DMA - 85% trading below their DMA
- 50 DMA - 68% trading below their DMA
- 100DMA - 67% trading above their DMA
Ratio of new highs to new lows for various periods -- 1.0+ bullish, 1.0 neutral, below .99 bearish -- we are bearish for all 3 periods
- 20 day new high/new low ratio -- 221/2265 = .10
- 65 day new high/ new low ratio -- 107/710 = .15
- 100 day new high/new low ratio -- 97/302 = .32
Summary -- We had a very bearish week and all my BarChart indicators show a very downward trend. Economists are saying the market is in recovery but we have had a 9.13% retraction of the stock market from our earlier high on 10/19. Many were expecting a 10% correction so I hope that is it. I'll be trimming my positions that fall below their 50 DMA but will not replace those positions until I see some market support.
On my Wall Street Survivor portfolio I have placed sell orders for ESC -- Emeritus and VRUS -- Pharmasset both trading below the 50 DMA. My portfolio in is dead last place in the competition. I purchased stocks that had a greater beta than the other players and the down market crushed me harder. Next month is another month.
Disclosure: I do not hold positions in any of the stock mentioned in this blog at the time of publication