Note To Subscribers: There was no interim update last week and probably not one this coming week, unless we get BDH Dashboard Buy signals on both Indicators # 5 and #8, but that does not appear likely unless we get a big rally next week.
This will be a shortened blog as is the case every other week and when there is little movement in the market or no BDH Dashboard signal change.
The stock market had a roller coaster week with down days on Monday and Wednesday and up days on Tuesday, Thursday and Friday. For the week, the DJIA was the winner up 1.41%, while the S&P 500 fell 0.59% and the NASDAQ Composite declined 0.29%. The DJIA was up 649 points from its intra-day low on Wednesday, quite a comeback.
The late August through mid-October period is normally one in which the market tends to see a downtrend, but we are certainly not in normal times. So anything can happen like a “black swan” event.
We are now on a BDH Dashboard “1” SELL signal as Indicator #5 had a negative MACD crossover on Wednesday. See the nearby chart.
The percentage of NYSE stocks above their 50-dmas fell to 54.08% down slightly from 54.78% the week before. The percentage of stocks above their longer-term 200-dma is currently at 58.28% down slightly from 59.34% the week before.
This past week gold was down 2.23%, while gold miners were down again, but by a big 8.95% 2.84%. Fixed inclome was up between 0.27% (TLT) and 0.13% (IEF). Oil took a hit agin this week down about 2.21%.
Indicator #5 NASDAQ Composite with MACD. This indicator issued a MACD SELL signal on August 15, 2018, thereby reversing its August 10 BUY signal. Refer to the first chart’s orange circle on the negative MACD crossover on Wednesday. Note also that the red support line is about where the NASDAQ closed the week.
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):
Conclusion — Market Trying to Work Its Way Higher
We will wait patiently for a higher market to get the next BDH “3” BUY signal from the current “1” SELL signal. As is normally the case, whenever the market (in our case the NASDAQ Composite as it is the index used for the BDH strategy) comes off a decline, the market has to rise about 5% or more for the BDH indicators to give a BUY signal. It can be difficult for investors to wait for the signal as the market keeps rising while we are 100% in cash, but that is a fact of life, if the BDH strategy is followed.
The NASDAQ Composite’s current position is still below its red support line.
Notice About A Subscription To this Site
As of March 23, 2018, this site has been offering a yearly subscription for $20 for interim weekly 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 firstname.lastname@example.org. Please click on the following link for subscription details: BDH Request for Support March 23, 2018
Interim mid-week emails to subscribers will not be sent out each week unless there is a BDH Dashboard signal change or an ETF sale or an unusual situation.