This will be a shortened blog as is the case every other week.
The stock market continued its advance at a snails pace this past week with the major averages up varying percentages. For example, although the DJIA gained 2%, the S&P 500 rose only 0.86%, and the NASDAQ Composite advanced only 0.35%. And the first two averages hit all-time highs again.
For the 2017 year-to-date, the DJIA has gained 18.04%, compared to 15.02% for the S&P 500, and 23.15% for the NASDAQ which is still the big leader among these three indexes year-to-date. The BDH strategy is up only 10.45% for the year, after our market exit two weeks ago. There are still many stocks not participating in this rally. The number of new 52-week NYSE highs decreased slightly this week to 467 from 472 the week before.
Indicator #8 The NASDAQ Composite Summation Index issued a SELL signal on October 17 as both components of the indicator confirmed each other. Refer to second chart. Thus, the BDH Dashboard declined to a “3” BUY signal. Also, note on the top chart, that the MACD (in orange circle area) is nearing a negative crossover. A decline in the NASDAQ in the early part of the week will result in a SELL signal on Indicator #5. That would put the Dashboard at a “2” NEUTRAL signal, if that situation occurs. I will not be posting an interim blog as we are in a 100% cash position.
Conclusion — Market Advance Continues
The stock market continues to advance, but more slowly. Be patient and keep the emotion out of the investment equation. If you are still invested keep your stop LIMITs in place and ride the market until the next BDH sell signal occurs or you are stopped out of any position beforehand.
Remember that you are responsible for your investments and how you manage them. If you decide to follow the BDH strategy, then you are responsible for checking the BDH indicators daily during times when the market is volatile. Just bookmark the two charts above and look for any signal changes. I may not available during the week to provide interim Dashboard signal changes. It is important to be pro-active, so as not to miss any Dashboard signals. Decide on and place your stop LIMITS that meet your risk profile.