This will be a shortened blog as is the case every other week.
Enjoy your Thanksgiving holiday with family and friends, and be thankful for everything you have.
The stock market was mostly flat for the week with two major indexes down between 0.13% to 0.27%, while the NASDAQ Composite was up 0.47% at a new all-time high. For the YTD: DJIA + 18.19%; S&P + 15.19%; and NASDAQ +26.00% compared to 10.45% for the BDH strategy.
Market Internals Weaken
The number of new 52-week NYSE highs fell again to 289 from 356 this past week and 439 the week before that. The percentage of NYSE stocks above their 50-dmas is currently at 54.46% compared to 66.30% three weeks ago. The percentage of stocks above their longer-term 200-dma is stable at 65.87%, but declining from 71% on October 18.
Indicator #5 NASDAQ Composite with MACD. This indicator issued a MACD SELL signal on November 14 cancelling the previous BUY signal (refer to upper chart’s MACD indicator).
Indicator #8. Note $NASI has an orange circle showing that an Index crossover of the EMA is imminent, but the MACD below it has yet to curl up.
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 is dropped to 13th 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 Maintains Its Advance
The stock market continues to resist more than a minimal decline. 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.