This will be a shortened blog, as is the case every other week.
The stock market blasted higher through the Thursday close, then got clobbered by the Flynn news in late morning, only to recover most of the losses by the close. For the week the market continued to make all time highs on Thursday.
For the YTD: DJIA + 22.61%; S&P + 18.02%; and NASDAQ +27.20% compared to 10.45% for the BDH strategy. Indicator #5 issued a SELL signal on Friday cancelling the November 22 BUY signal, as the MACD had a negative crossover (see chart to the right). Indicator #8 also issued a new signal but it went the opposite way. A BUY signal occurred November 21 as shown in the second chart. Therefore, the Dashboard remains on a “3” BUY signal.
The number of new 52-week NYSE highs finally is moving higher as 547 issues made new highs compared to 369 the week before. Oddly the number of new lows increased to 151 up from 102 the prior week. but still surprising given the market’s strength. The percentage of NYSE stocks above their 50-dmas edged up to 62.93% from 60.23% the week before, and still way down from a reading of 79% on October 18. The percentage of stocks above their longer-term 200-dma increased slightly to 68.61% compared to 67.95% the prior weel.
Oil and energy stocks were down for the week, as was gold and gold miners. Fixed income moved slightly lower. In the above chart, please type in ETF ticker symbols IEF, TLT, BOND, SHY or AGG or others one at a time to see their current bond weekly performance, or GLD, GDX and USO and $BRENT for the other averages. Also,key-in in AMZN and GOOGL to see the massive moves on Friday
Dark Liquidity BDH Performance Statistics
www.dark-liquidity.com/BDHV2new.php independently tracks the BDH performance. For the year-to-date 2017, BDH is up 10.45%. It has dropped to 14th place out of a 22 strategies followed by that website. See the “Strategies Summary” link on the top of their page.
Top 5 ETFs – 100% Cash Position
We are still in a 100% cash position, so no ETFs are currently held. The risk is too high to enter the market right now. Prudence is called for as the market internals continue to weaken, as is the Small Cap 600 index,
Conclusion — Market Advance Stays Intact
The stock market continues to move higher. 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.