Market in Recovery -- 11/19

The headlines were confusing but the numbers tell it all.  Every weekend we step back from all the hype and use Barchart to get the data for our 3 yardsticks to gauge the market.  3 yardsticks are necessary because although they all measure momentum they each do it in a slightly different way.  Let's see what happened.

Value Line Index -- Contains 1700 stocks so its much broader than the S&P 500 or the very narrow Dow 30 -- Slightly upward trend

• 60% Barchart short term technical signal
• Up .53% in the last week
• Up 4.22% in the last month
• Closed Friday at 2667.85 which is 12.28% above its 50 day moving average of 2567.18
• Relative Strength Index 58.20%

Barchart Market Momentum -- Contains approximately 6000 stocks --Percentage of stocks trading above their Daily Moving Averages for various time frames -- Watch this indicator in the coming week -- Above 50% is always good

• Friday only 49.58% closed above their 20 DMA, 64.54% closed above their 50 DMA, 77.29% closed above their 100 DMA
• Last Week 52.05% closed above their 20 DMA, 70.34% closed above their 50 DMA, 79.34% closed above their 100 DMA
• Last month 67.49% closed above their 20 DMA, 81.73% closed above their 50 DMA, 83.11% closed above their 100 DMA

Ratio of stocks hitting new highs/new lows for various time frames -- 1.0+ bullish, 1.0 neutral, below .99 bearish -- Still OK

• 1 month new highs/new lows -- 367/328 = 1.12
• 3 month new highs/new lows -- 309/106 = 2.92
• 6 month new highs/new lows -- 246/75 = 3.28

Summary and Investment Strategy -- The market took a breather but not a reversal.  This week I'll look at the Barchart Market Momentum indicator and wait for 50% of the stocks to start trading above their 20 Day Moving Averages again.  Then I'll breath a sigh of relief.

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.

Stock to consider - 11/17

Even on day when I'm not buying it's always good to consider some stocks just in case.  Take a look at this list and research them a little further.

AQQ- American Spectrum Realty -- 100% Barchart buy signal - 19 new highs and up 45.387% in the last month-Trading at 18.00 which is 40.08% above its 50 day moving average of 13.46-  Relative Strength Index 84.89% and rising

GME - Game Stop -- 96% Barchart buy signal -- 17 new highs and up 14.63% in the last month -- Trading at 21.00 which is 13.09% above its 50 day moving average of 19.60-- Relative Strength Index 65.34% and rising

OBAF -- OBA Financial Services -- 96% Barchart buy signal -- 16 new highs and up 7.84% in the last month -- Trading at 12.10 which is 7.08% above its 50 day moving average of 11.33-- Relative Strength Index 68.45% and rising

TOO -- Teekay Offshore-- 96% Barchart buy signal -- 16 new highs and up 18.52% in the last month- Trading at 28.84 which is 31.88% above its 50 day moving average of 24.63-- Relative Strength Index 73.41% and rising

PNCL - Pinnacle Airlines -- 100% Barchart buy signal -- 14 new highs and up 39.02% in the last month -- Trading at 7.41 which is 54.37% above its 50 day moving average of 5.53 -- Relative Strength Index 79.97% and rising


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.