A blog post

Dashboard Declines to “2” Neutral, Sell Signal Imminent

Posted on the 11 December, 2013 at 4:52 pm Written by in Blog

COMP December 11 2013Today’s Market Action

The stock market took a pounding today as two of the major averages tumbled more than 1.1% while the DJIA fell 0.81%.  As the first chart indicates, the MACD had a negative crossover today resulting in a SELL signal on Indicator #5.  Moreover, the index is resting on its blue support line.  The next support level is at 3900.

Additionally, Indicator #8 the index crossed over  its moving average to the downside on Tuesday. The MACD’s  negative crossover is imminent.  Once this occurs this indicator will be on SELL signal as well.  Refer to the second chart.

NASI December 11 2103The Dashboard is now at “2” NEUTRAL with a “1” SELL imminent when Indicator #8 has the MACD crossover.

Top 5 ETFs — Two Sells Today

Two ETFs were sold intra-day today at their 3% stops.  IBB was sold at $217.35 and IWM was sold at #110.52.  Thus there are three ETFs left in the portfolio which will not be replaced as the Dashboard is not on a BUY signal.  Note that the top 16 ETFs on etfscreen.com/budonthold have a “fail” rating and that only 4 out of 42 have a “pass” rating.

The regular weekend blog will be published as usual with more details.

some comments

There are currently 2 of them
  1. Thomas 12 December 2013 at 5:46 am permalink

    Hello,

    may I ask a question how to handle the Buy and Sell signal of each individual indicator. Some indicators like the sentiment give very rare signals. Do the signals count in the week they occur or as long as no oposite signal arrive like a flip-flop?

    The last sentiment buy signal was on 31th of january 2013, was is valid only in that week or until the sell signal on 18th of April.

    Best Regards

    Thomas

    • Les Masonson 12 December 2013 at 11:53 am permalink

      Hello Thomas,

      Each indicator works on its own. Once a buy or sell signal is given on each indicator it stays in effect until it reverses direction. The exception is the sentiment indicator #6 which changes to “0” if it has not changed direction in 6 months, otherwise it follows the prior rule. As you know it takes three indicators to signal a Dashboard buy signal and only a score of 1 or 0 to signal a Dashboard SELL signal. I hope this explanation helps.