This will be a shortened blog because of the holiday weekend.
The stock market surged back after the big drop about 8 days ago. The S&P and NASDAQ Composite hit new all-time highs. Indicator #5 issued a BUY signal as the MACD had a positive crossover on Friday May 24 (see chart to the right). Also, Indicator #8 had the index crossover the 5 day-ema, but the MACD did not yet crossover (see second chart below).
For the week the DJIA increased by 1.32%, the S&P 500 up 1.43%, and the NASDAQ advanced 2.08%. The percentage of NYSE stocks above their 50-dma is at 56.9%, well below the January high of 83.36%, and the percentage above the 200-dma is at 64.87% down from its peak of 76% in early March.
The number of 52-week NYSE highs fell to 136 from 195 the prior week and is a very low number for a market at its highs.
THe BDH portfolio is up 6.24% for the year compared to 6.67% for the DJIA, 7.91% for the S&P 500, and 15.36% for the NASDAQ. The BDH portfolio was negatively impacted by the 15% drop in BRF about 8 days ago. Our trailing stop limit was not executed, as BRF gapped down. However, it has rebounded a fair amount since then and is still held in the portfolio. Pull up a chart of BRF to see the current situation.
The AAII Sentiment Index (Indicator #6) had another bullish confirmation as the bullish percentage jumped to 32.9% up nine percentage points for the week from its prior level below 25.
Enjoy the holiday weekend!
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.