The stock market closed the week with a tepid advance of 0.50%, except for the NASDAQ Composite which gained 1.62% and the small-caps which have closed at a new all-time high. These two groups are leading the way higher while the rest of the market has not done much since the beginning of the year.
Gold and gold miners were up flat for flat for the week, while oil was down, and fixed income was up less than 0.25%.
The number of new NYSE 52-week highs was 244 around the same level for the past few weeks. The percentage of NYSE stocks above their 50-dmas was 64.8% down from 65.7% the prior week. The percentage of stocks above their longer-term 200-dma is currently at 57.4% down from 58.9% the prior week.
Indicator #2 NASDAQ Composite Index and 100-dma. This indicator had a BUY signal on May 5, 2018. See upper chart
Indicator #5 NASDAQ Composite with MACD. This indicator issued a MACD BUY signal on April 12, 2018.
Indicator #6 AAII Weekly Investor Sentiment Survey Bullish Percentage. The latest May 2, 2018 Bullish Percentage reading was 35.02 up 2 points the prior week. Remember that a reading below 25%, then followed by any subsequent weekly advance below that level is a BUY signal on this indicator.
Indicator #8 NASI Summation Index and MACD. This indicator is currently on a new May 10, 2018 BUY signal, as the MACD turned decisively negative. See lower chart.
Here is a chart showing all Dashboard buy and sell signals (it may take a day or two for the new signal to be posted):
Dashboard Remains on “3” BUY signal
Here is the latest Dashboard. Click on the line below:
Note that I could not provide a spreadsheet type link due to a software issue with this WordPress software. Go back to January 2017 to see the last spreadsheet and all prior data.
Dark Liquidity BDH Performance Statistics
www.dark-liquidity.com/BDHV2new.php independently tracks the BDH performance.
Top 5 ETFs – 40% Invested,60% Cash
The following positions were held as of the close on May 5: XLY and DBC. YTD the BDH strategy is up 2.63% compared to 3.79% of the three major averages. The NASDAQ Composite is the clear leader up 9.43%, while the DJIA is down 0.34% and the S&P 500 up only 2.28%. Clearly, this is a market dominated by the techncology sector where most of the big gains are.
Here is the spreadsheet: Top 5 ETF June 2, 2018
BDH Decision Page – BDH Dashboard ETFs
Here is the link to the Decision Page. Copy and paste it into your browser:
Currently, there are 35 “passes” out of 52 ETFs compared to 34 two weeks prior, and 19 “passes” among the top 20 ranked ETFs, clearly indicating the market leaders are holding up well.
To get a feel where the best performing ETFs are by asset class, I suggest that you pull up the seven asset classes on the right side of the Decision Page (in blue ink) to see which ETFs have been doing the best — e.g., sector ETFs. You can click on the down arrow in the three month and one month columns of the each grouping to see short-term performance. Currently, XOP, UGA, DBC, VGT, XLE, QQQ, SMH and XLY are the strongest ETFs in their respective categories.
Conclusion — Market Resting Before Next Move
The NASDAQ Composite has broken out of a 13-day trading range to the upside, as indicated by the action above the highest orange horizontal line on the first chart. At this point we are still 40% invested with 3% trailing closing price stops in place. Without the technology leaders this market would be much lower. Although we did get a decisive BDH Dashboard “3” BUY signal on May 10, we are being prudent and have not acted on it yet. Note that the NASDAQ Composite is still now only 1.4% away from its March 13 high. Subscribers will be sent an email today before 5 PM with some more some more insight.
Notice About A Subscription To this Site
As of March 23, 2018, this site has been offering a yearly subscription for $20 for interim updates and additional analysis, as needed. This blog is still free, but some information and analysis will be provided only to subscribers. If you’ve sent me a payment, but have not received the earlier emails, then please email me at email@example.com. Please click on the following link for subscription details:
Interim mid-week emails to subscribers will not be sent out each week unless there is a BDH signal change, an indicator signal change, an ETF sale or an unusual situation.
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.