First I see what the Value Line Index did. I like the Value Line Index because it uses 1700 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 -- what percentage of stocks closed above their daily moving averages for various time periods -- almost 6000 stocks covered -- 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