This past week was another winner with two of the three major averages closing on highs for the year, with the S&P 500 and DJIA closing at all-time highs. New 52-week highs on the NYSE surged higher to 574 compared to 425 for the prior week. For the week, the DJIA gained 1.24% compared to a 1.86% for the NASDAQ Composite and 1.34% for the S&P 500. Many technology, momentum and social media stocks again experienced high volatility recovering more of their recent losses.
For the year-to-date, the NASDAQ Composite is up 3.47%, the S&P 500 is up 5.47%, and the DJIA is up 2.10%. In comparison, the BDH portfolio is up 7.27% this year, and is 100% invested.
Gold (GLD) made a slight advance toward week’s end. Bonds recovered most of their Monday’s losses. Please type in ETF ticker symbols IEF, TLT, BOND, SHY or AGG or others one at a time to see their current week’s performance after pulling up the NASDAQ Composite chart.
Indicator #2 NASDAQ Composite Index and 100-dma. This indicator is on a BUY signal and well above its 100-dma. (Refer to first chart).
Indicator #5 NASDAQ Composite with MACD. This indicator had a clear-cut MACD crossover BUY on April 22nd . (Refer to first chart). The MACD is approaching levels seen near the early March highs.
Indicator #6 AAII Weekly Investor Sentiment Survey Bullish Percentage. The latest June 4th bullish percentage reading was 39.5% which was higher than the May 28th bullish percentage reading of 36.5%. Investors are now more bullish going out six-months into the future.
Indicator #8 NASI Summation Index and MACD. This indicator is on a BUY signal as of April 28. (Refer to the second chart and the arrows indicating the two crossover areas.)
A chart of the buy and sell signals is presented here, but may not be updated yet:
Dashboard on “3” BUY Signal
The latest update is shown here:
Dark Liquidity BDH Performance Statistics
www.dark-liquidity.com/BDHV2new.php independently tracks the BDH performance. So far, year-to-date the BDH portfolio is up 7.27% compared an average gain of 3.68% for the three major averages.
Top 5 ETFs – 100% Invested
All five ETFs (EPI, IYT, XLB, VGT and XLV) are performing well with EPI not only overcoming a 3.07% previous weekly loss, but now leading the way higher with a gain of 5.32%. You will note that all of the Top 5 ETFs also have a “pass” rating. VGT and XLV slipped a notch during the past week, but are still not close to dropping below rank 20 which is one of the selling criteria.
See table showing the results of the Top 5: Top 5 ETF Tracking June 6, 2014
Note that on the etfscreen.com/buydonthold Decision page that the number of ETFs with a “pass” rating is now at 27 out of 42 compared to 20 in the prior week. These average readings clearly illustrate the market’s positive bias the past few weeks. If you look at the seven categories of ETFs on the right side of the page and click on the Sector Funds tab you will not the high relative strength ranking.
Remember that none of the ETFs selected will be sold unless there is a Dashboard SELL signal or any of them drop below rank 20 on a daily basis or they fall below their stop LIMIT order whichever scenario occurs first.
Conclusion – Market Advance Continues
The market’s current direction remains upward and remains so until the BDH strategy notes otherwise. The potential head-and-shoulders chart pattern mentioned last week on the NASDAQ Composite appears to be dead for now, as the right shoulder is not showing a drop. Always use stop limit orders to protect your principal after making any ETF purchases.