Weekly Market Barometer W/E 6/11

This week really wasn't so bad. The market recovered nicely and is just about back to slightly above neutral. Let's look at our 3 yardsticks and see where we are.

Value Line Index -- contains 1700 stocks so it's broader than the narrower S&P 500 or very narrow Dow 30

• Ended the week up 2.32% but that's still down 1.34% for the month
• Barchart still rates the Index a 62% sell with 9 sell, 3 hold and only 1 buy signals
• The Index closed Friday below it's 20, 50 & 100 Day moving averages

Barchart Market Momentum -- The percentage of stocks closing above their Daily Moving Averages for various time frames -- Above 50% is always good

• 55.50% closed above their 20 DMA on Friday -- Only 27.05% above their 50 DMA -- Only 41.39% closed above their 100 DMA
• Last week only 23.74% closed above their 20 DMA -- Only 20.40% closed above their 50 DMA -- Only 33.28% closed above their 100 DAM
• Last month only 40.89% closed above their 20 DMA -- 51.41% closed above their 50 DMA -- 69.30% closed above their 100 DMA

Ratio of stocks hitting new highs/new lows for various time frames -- 1.0+ bullish, 1.0 neutral, less than .99 bearish -- Slightly bullish this week

• Ratio of 1 month new highs/new lows -- 395/252 = 1.57
• Ratio of 3 month new highs/new lows -- 181/173 = 1.05
• Ratio of 6 month new highs/new lows -- 135/114 = 1.45

Summary and Investment Strategy -- The week showed slight improvement in all 3 yardsticks. If the market holds through noon Monday I may add some new stocks to my portfolios. Of course that won't stop me from trimming off any stocks that keep having negative performance issues.

Jim Van Meerten is an investors who writes on financial matters on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com.