Value Line Index -- Contains 1700 stocks so it's much broader that the S&P 500 or very narrow Dow 30 -- Things looked good
- Index was up for the week by 4.30%
- 40% Barchart short term technical buy
- Friday closed above it's 20 & 50 day moving average
- 14 day Relative Strength Index was 59.20% and rising
Barchart Market Momentum -- Contains approximately 6000 stocks -- Percentage of stocks trading above their Daily Moving Averages for various time frames -- Above 50% is always good
- Friday over 79.90% closed above their 20 DMA, over 71.21% closed above their 50 DMA, only 38.22% closed above their 100 DMA
- Last week only 38.19% closed above their 20 DMA, just 51.04% closed above their 50 DMA, only 45.02 closed above their 100 DMA
- Last month over 74.00% closed above thier 20 DMA, over 73.29% close above their 50 DMA, over 57.52% closed above their 100 DMA
Ratio of stocks hitting new highs/new lows -- 1.0+ bullish, 1.0 neutral, under .99 bearish -- Bullish for the first time in a while
- 1 month highs/lows -- 839/85 = 9.87
- 3 month highs/lows -- 506/60 = 8.43
- 6 month highs/lows -- 272/43 = 6.33
Summary and Investment Strategy -- Just because the market was up this week doesn't mean you should keep everything. Always trim out the stocks that are tanking or lagging far behind the market. Add freely but only if you find stocks that meet all of your criteria.
See you on Tuesday.
Disclosure: No positions in the stock mentioned at the time of publication