This will be a shortened blog as is the case every other week.
The stock market powered ahead again for a new all-time high on all major averages. For the week, the NASDAQ Composite gained 1.04%, the S&P 500 was up 0.86%, and the DJIA was up 1.04%. Note the sharp angle of the ascent on the right side of the first chart shown by the green sloping line. The BDH strategy remains on a “3” BUY signal. YTD the BDH Top 5 ETFs are up over 5%.
On January 19th, PBW fell to rank 21 on the etfscreen.com decision table. Any ETF is sold after falling below rank 20. It was sold at the open on Friday, January 20 and replaced by XRT purchased at the opening price of $47.54.
The number of new NYSE 52-week highs was 581 compared to 584 the prior week. Also, the number of new 52-week lows jumped to 162 from 114. Normally, this would be a note of caution. However, upon looking through the list of new lows at least three-quarters were preferred stocks or fixed income related not equities. Therefore, this increase has no negative meaning.
The Top 40 ETFs in our universe have a “pass” rating and the only “fails” are fixed income or inverse ETFs. Oil, energy, gold, gold miners, and fixed income all declined for the week
A full report will be provided next week as usual. Enjoy the BIG BULL as long as long as it lasts. But make sure your stop LIMIT orders are in place to protect you when the market reverses directions.
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.