Van Meerten / BarChart Stock Market Momentum Indicators W/E 9/4/09 Code Green

This was a pivotal week. The Market was down for the first 3 days but came back the last 2 closing slightly down. As measured by the Value Line Index we were down a net of 1.41% for the week.

1 - Value Line Index - I use this index because it is a broad arithmetic index covering 1700 of the largest stocks on the exchanges. Better that 95% for the entire US market capitalization.

• BarChart evaluated the index as an overall 56% BUY with their short term indicators a 60% BUY - Good sign
• The Value Line Index trended above it's 20, 50 & 100 Day Moving Average - Good sign

The Value Line Index is still trending in a positive upward trend

2 - BarChart Market Momentum - This week BarChart monitored 5900+ stocks

Percentage of stock trading above their Daily Moving Averages:

• 20 DMA - 57%
• 50 DMA -78%
• 100 DMA - 84%

Since better than 50% all stocks are trading above their DMAs a good bullish sign.

3 - Ratio of New Highs to New Lows - When there are more new highs than new lows that's a bullish sign

• 20 day new high/ low ratio - 655 highs/336 lows = 2.01
• 65 day new high/ low ratio - 470 highs / 239 lows = 1.97
• 100 day new high/ low ratio - 432 highs / 51 lows = 8.47

Since the ratio is positive for all three time periods that's a bullish sign.

Summary: Although the market was down for the week and all trends were not as strong as last week we still feel that its a good time to be invested in the stock market and in your 401K

Code Green - investors have a green light to proceed.

BarChart Stock Market Momentum Indicators W/E 8/28/09 CODE GREEN

At the end of each week I look to BarChart to test the Tides and see which way the Tide is flowing. This week the tides seems to be flowing in an rising trend so there is still a CODE GREEN meaning that it looks like a good time to be in the Stock Market.

Let's take the 3 indicators I follow and see what they say;

Value Line Index - This is an arithmetic index of the 1700 largest stock followed by Value Line. These 1700 stock make up over 95% of entire US stock market capitalization.

BarChart's Opinion is very postive on the Index and gives it a 96% Buy signal

Is the Index trending above it's Daily Moving Averages:

1. 20 DMA Above
2. 50 DMA Above
3. 100 DMA Above

All 3 look good

Next I check the BarChart Market Momentum page to see how many stocks are trading above their Daily Moving Average:

1. 20 DMA - 66% are trading above
2. 50 DMA - 83% are trading above
3. 100 DMA - 87% are tradign above

This is a very good sign

Next I see that the ratio of stocks trading at new highs to new low for 3 time periods:

1. 20 day - 1200 highs/316 lows = 3.8 positive ratio
2. 65 day - 980 highs/111 lows = 8.83 positve ratio
3. 100 day - 916 highs/72 lows = 12.72 positive ratio

All 3 periods have many more new highs than new lows - a very positive sign

Since there don't appear to be any mixed signals in my 3 indicators I'm going to continue my CODE GREEN; It's OK to invest in the market and stay fully invested in your 401K