This week the market strengthened -- W/E 9/17

The market action this week was stronger and gave me some hope for the future. We will use our 3 yardsticks because no single one tells it all. All the data comes from Barchart. Let's see where we stand.

Value Line Index -- Contains 1700 stocks so its broader than the S&P 500 or very narrow Dow 30 -- Nice week mostly up

• Trend Spotter (tm) buy
• Barchart 40% short term buy signal
• Closed Friday above its 20, 50 and 100 daily moving averages
• Up 2.07% for the week
• Up 3.76% for the month
• 14 day Relative Strength Index of 95.26%

Barchart Market Momentum -- Contains approximately 6000 stocks -- Percentage of stocks closing above their Daily Moving Averages for various time frames -- Above 50% always good

• Friday over 79.08% closed above their 20 DMA, over 72.71% closed above their 50 DMA, over 61.61% closed above their 100 DMA
• Last week over 77.80% closed above their 20 DMA, over 69.35 closed above their 50 DMA, over 51.11% closed above their 100 DMA
• Last month only 39.93% closed above their 20 DMA, just 50.77 closed above their 50 DMA, only 43.17% closed above their 100 DMA

Ratio of stocks hitting new highs/new lows -- 1.0+ bullish, 1.0 neutral, less than .99 bearish

• 1 month new highs/new lows -- 1140/191 = 5.97
• 3 month new highs/new lows -- 514/115 = 4.47
• 6 month new highs/new lows -- 260/91 = 2.86

Summary and Investment Strategy -- I'm liking this market. We will trim losing positions and not be afraid to replace them. By the end of the week I think I'll be fully invested.

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..

Tanzanian Royalty Exploration -- TRE

Tanzanian Royalty Exploration Inc. (TRE) was added to the Barchart Van Meerten Speculative portfolio this morning. TRE is a mineral resource company whose business strategy is to acquire royalty interests of future gold positions in both pre-production and production.

The stock rated a 96% Barchart buy signal and hit 16 new highs in the last 20 sessions including 5 in the last 5. Price appreciation was 28.41% last month and the stock recently traded at 6.98 well above its 50 day moving average of 5.49. The 14 day Relative Strength Index was 98.04%

The general investing public is still high on gold stocks and on Motley Fool the Caps members voted 141 to 22 that the stock will beat the market with the All Stars also high by a vote of 70 to 7.

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..

Terremark World Wide -- TMRK

Terremark Worldwide Inc. (TMRK) was added to the Barchart Van Meerten New High portfolio this morning. TMRK is a global leader in providing Internet infrastructure and managed services. Terremark is the owner and operator of the NAP of the Americas, the premier Network Access Point in the world and the model for TerreNAP Data Centers the company intends to deploy in emerging markets.


Wall Street brokerage firms love this company and have published 11 buy recommendations to their clients. Analysts feel sales will grow by 18.80% this year and 19.00% next year. Earnings per share are expected to have annual increases of 21.25% for at least 5 years.

The stock has current price momentum and increased by 30.29% in just the last month. Barchart gave the stock an over-all 96% buy rating. The stock hit 17 new highs in the last 20 sessions including 5 in the last 5. The stock has a 14 day Relative Strength index of 98.33% and recently traded at 10.41 well above its 50 day moving average of 8.52.

The general investing public likes this stock too with the CAPS members on Motley Fool voting 78 to 22 that the stock will beat the market with the All Stars in agreement 28 to 12. Fool notes that of the Wall Street journalists they follow all of the last 13 articles about the company have been positive.

The stock deserves you attention because:

• Recent upward price momentum in more than 50% of the latest trading sessions
• Wall Street buy recommendations based on estimates of double digit increases in sales and earnings
• Positive investor sentiment

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.

Van Meerten New High Portfolio now available to the public

In a special arrangement with Marketocracy Capital Management you may now have a Separately Managed Account that mirrors to holdings of the Van Meerten New High portfolio.

In the past 5 years the portfolio and the S&P 500 have had the following returns:

S&P 500

• 1 year 7.39%
• 2 year -2.85%
• 3 year -18.47%
• 5 year 4.26%

Van Meerten New High portfolio

• 1 year 20.39%
• 2 year 17.06%
• 3 year 37.66%
• 5 year 77.62%

For complete information please contact Marketocracy Capital Management or call Dan Miroballi 650 472-2274

Keegan Resources -- KGN

I added Keegan Resources Inc. (KGN) to the Barchart Van Meerten Speculative portfolio this morning. KGN is a well-financed junior gold company with two premier gold assets in Ghana, West Africa, within one of the world's most prolific gold regions. KGN has successfully identified a significant gold deposit at its Esaase property which is currently being expanded with mineralization open in all directions. KGN's second project, the Asumura gold property, is located 65 km south of the 18+ M ounce Ahafo mine along one of Ghana's three major deposit hosting structures.

As with all commodity stocks we will consider this a technical momentum play and will sell if the upward price momentum is not sustained.

Only one Wall Street analyst is following the stock but he has a Strong Buy recommendation distributed to his clients.

KGN came up on my radar when I was using my Barchart new high screener to find stocks hitting the most frequent new highs. This one hit 14 new highs in 20 sessions including 5 in all of the last 5 sessions. The price increased 23.39% in the last month and is trading above its 20, 50 and 100 day moving average. The stock recently traded at 6.88 well above its 50 day moving average of 5.65. The 14 day Relative Strength Index is 83.07% and rising.

Even though only on Wall Street analysts is following the stock the general investing public in positive on this one. Over on Motley Fool the CAPS members voted 60 to 13 that the stock will beat the market with the All Stars in agreement 31 to 4.

Gold is where its at in this current market so if you are not over weighted in gold consider:

• Keegan has quality gold reserves
• Recent, positive and consistent upward price momentum
• Wall Street Strong Buys distributed to clients
• A positive general investor sentiment

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..

Internet Capital Group - ICGE

I added the Internet Capital Group (ICGE) to the Barchart Van Meerten Speculative portfolio this morning. ICGE is an Internet holding company actively engaged in business-to-business e-commerce -- B2B e-commerce -- through a network of Partner Companies. It provides operational assistance, capital support, expertise, and a strategic network of business relationships intended to maximize the long-term market potential of business-to-business e-commerce Partner Companies.

The capital structure is innovative. They own a major investing interests in 13 different B2B e-commerce companies then help them through both funding and management assistance. A little bit venture capital - a little bit holding company. I like this.

Wall Street brokerages like it to with 4 Strong Buy recommendations distributed to their clients based on projections of increases in sales of 24.30% this year and 9.00% next year. The consensus is that earnings will increase 116.70% this year and continue at an annual rate of 15.00% for the next 5 years.

There is very good price momentum at the present time. Barchart has an 80% buy signal. The stock is trading above its 20, 50 & 100 day moving averages and recently traded at 9.79 well above its 50 day moving average of 8.56. The stock hit 14 new highs in the last 20 trading sessions and increased by 23.13% in the last month. The 14 day Relative Strength Index is at 68.52% and rising.

The general investing public as measured on Motley Fool has faith in the stock and voted 49 to 12 that the stock will beat the market with their All Stars in agreement 13 to 1.

The stock meet my 3 criteria for investment:

1. Recent positive and consistent upward price momentum
2. Wall Street buy recommendations based on estimated increases in sales and earnings
3. A positive general investor sentiment

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..

Jim Van Meerten is an Advisor to Marketocracy Capital Management

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..

Lj International -- JADE

This morning I added LJ International Inc.(JADE) to the Barchart Van Meerten Speculative portfolio. JADE together with its subsidiaries, engages in the design, manufacture, marketing, and sale of precious and color gemstones, and diamond jewelry. The company offers colored jewelry; and pieces set in yellow gold, white gold, platinum, or sterling silver and adorned with colored stones, diamonds, pearls, and precious stones. Its product line includes earrings, necklaces, pendants, rings, and bracelets. The company distributes its products to fine jewelers, national jewelry chains, department stores, and discount chain stores in North America. It also involves in the retail of jewelry through the ENZO brand in the Asia Pacific region with 95 company operated ENZO stores in the People's Republic of China, Hong Kong, and Macau. In addition, it owns commercial and residential properties in Hong Kong, which are held primarily for lease. As the world-wide economy recovers the jewelry business should recover also. They appear to be positioned with the right products in the right markets.

Barchart has a 96% technical buy signal with recent price appreciation of 22.03% in the last month. JADE hit 15 new highs in the last 20 sessions including 5 of the last 5. The 14 day Relative Strength Index is 90.77% and the stock recently traded at 3.59 well above its 50 day moving average of 2.96.

Although Wall Street brokerages are not yet following this stock the general investing public on Motley Fool voted 227 to 6 that the stock will beat the market including the All Stars with a vote of 41 to 0.

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..

Peru ETF - EPU

This morning I added the iShares MSCI All Peru Capped Index Fund (EPU) to the Barchart Ban Meerten New High portfolio. EPU seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Peru Capped Index . The Index is a free float- adjusted market capitalization index designed to measure the performance of the "Broad Peru Equity Universe" MSCI by identifying Peruvian equity securities that are classified in Peru according to the MSCI Global Investable Market Indices Methodology as well as securities of companies that are headquartered in Peru and have the majority of their operations based in Peru.

At the present time EPU is very heavy into mining commodities:

1. Industrial Materials -- 61%
2. Financial Services -- 30%
3. Consumer Goods -- 8%
4. Energy -- 1%

Although the Peruvian economy is presently recovering faster than the US economy this is more of a technical play based on the upward price momentum of the underlying securities.

Barchart has 13 of 13 technical buy signals for a 100% buy rating. The ETF gained 10.04% last month hitting 17 new highs in the last 20 trading sessions. The 14 day Relative Strength Index is 78.33% and rising. The ETF recently traded at 38.50 well above its 50 day moving average of 34.94.

Most Wall Street Brokerages do not give opinions on ETFs but the CAPS members on Motley Fool vote 31 to 5 that the ETF will beat the market with the All Stars in Agreement 13 to3.

Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: No positions in the stock mentioned at the time of publication