Weekly Market Recap - W/E10/22

Well it's the weekend again and time to step back from all the chatter, look at the data not the headlines and figure out just where we stand.  I'll use Barchart to mine for my data and my 3 standard yard sticks.  Each measures the market momentum in a different way and I use 3 because no yardstick is correct all the time.

Value Line Index -- Contains 1700 stocks so it is much broader than the S&P 500 or very narrow Dow 30 -- Although weak it was not out

• 60% Barchart short term buy signal
• 80% Barchart overall buy signal
• Trend Spotter (tm) buy signal
• Up .18% for the week
• Up 6.45% for the last month
• Closed Friday at 2597.89 which is above its 50 day moving average of 2431.58
• 14 day Relative Strength Index is 63.53%

Barchart Market Momentum -- Contains approximately 6000 stocks -- Percentage of stocks closing above their Daily Moving Averages for various periods -- The majority of stocks closed above their DMA for all time periods

• Friday 67.51% closed above their 20 DMA, 81.763% above their 50 DMA, 83.41% closed above their 100 DMA
• Last week 75.43% closed above their 20 DMA, 83.10% closed above their 50 DMA, 83.33% closed above their 100 DMA
• Last month 81.49% closed above their 20 DMA, 80.31% closed above their 50 DMA, 73.94% closed above their 100 DMA

Ratio of stocks hitting new highs/new lows for various time periods -- 1.0+ bullish, 1.0 neutral, below .99 bearish -- Although not very strong we are positive for all time periods.

• 1 month new highs/new lows -- 575/277 = 2.08
• 3 month new highs/new lows -- 425/59 = 7.20
• 6 month new highs/new lows -- 227/42 = 5.40

Summary and Investment Strategy --  Monitor the market closely next week.  Either the market is taking a breather or it may be ready for a slight adjustment.  Remember we are in earnings season and even stocks that have good earnings reports may take a slight hit if they come in less than expectations.  I've confident for the long run but with the way the herd has reacted lately I always have my stop losses in place.

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.