This will be another shortened blog, as there were no changes in the BDH strategy.
The stock market experienced a lackluster start to this holiday shortened week, but exploded higher on Friday, resulting in all major averages closing higher for the week. The NASDAQ Composite did the best up 1.35%, followed by the DJIA up 0.36%, and the S&P 500 up 0.55%. The technology stocks are exploding higher helping the S&P 500 and the tech heavy indexes move higher. Most other sectors of the market are not performing as well.
On February 21, Indicator #5 issued a BUY signal as the MACD had a positive crossover (see first chart bottom portion). This resulted in the BDH Dashboard rising to a “2” NEUTRAL signal. On the second chart of Indicator #8, and you’ll notice that once the MACD crosses to the upside (blue circled area), that the indicator will issue a BUY signal as well. That will happen this week if the market moves higher, resulting in a BDH “3” BUY signal.
Therefore it is your responsibility to check the second chart daily to see if it has a positive crossover, and then go to BDH Decision page to make your buy selections, if you take the BDH signals. I will be preparing a blog on next weekend, not during this week. The problem with buying after a “3” BUY signal, if it occurs this week, is that the market has had a big rally from the low point a few weeks ago, and it may retreat right after this signal is given. So this is not an optimal buy point and caution is needed.
Dark Liquidity BDH Performance Statistics
www.dark-liquidity.com/BDHV2new.php independently tracks the BDH performance. For the year-to-date 2018, BDH is up 2.79%. The DJIA is up 2.39% YTD, S&P 500 is up 2.76%, and the NASDAQ is up 6.29%. The BDH strategy is in 10th place out of a 22 strategies followed by that website. Strategies using the QQQ where higher performers. See the “Strategies Summary” link on the top of their page.
BDH Decision Page – BDH Dashboard ETFs
Here is the link to the Decision Page. Copy and paste it into your browser:
Currently, there are 30 “passes” out of 52 ETFs, a major improvement from 8 the prior week. and there were 7 “passes” in the top 10 with three being technology SMH, VGT, and QQQ.
Conclusion — Market Rallies Back Big Time on Friday But Caution is Urged
My concern is that the market may go up for a few days and result in the BDH strategy issuing a BUY signal just before the market tanks . We’ll have to wait and see what happens, and then decide how to go forward. Be very careful here as the market tends to fake out most investors most of the time.
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 and certainly right now. 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.