This will be another shortened review as the markets had an inconsequential week. A BDH subscriber update is being sent out immediately after the publication of this update.
The stock market closed the week mixed with the NASDAQ Composite gaining of 1.32%, the DJIA falling 0.89% and the S&P 500 ahead 0.01%. The major news of the week was that the NASDAQ Composite continued to make new all-time highs. The S&P 500 and DJIA are both not yet close to new highs. The DJIA is about 600 points from its January 2018 high, and the S&P 500 is 94 points away from its 2018 high.
Gold was down 1.36% while gold miners was down 0.58%. Oil was down about 0.67%, and fixed income was up on average about 0.40%. The number of new NYSE 52-week highs decreased to 284 from 365 the prior few week. The percentage of NYSE stocks above their 50-dmas was 67.4 down slightly from 69.5% the prior week. The percentage of stocks above their longer-term 200-dma is currently at 59.44% down slightly from 60.7% the prior week.
There were no changes in the indicators. The Dashboard is still on its “3” BUY signal.
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):
DBC had a 3% trailing stop triggered at the close on Thursday, therefore it was sold. This reaults in an 80% cash position with XLY as the only ETF in the portfolio.
Conclusion — Market Still Working Its Way Higher, Buy NASDAQ Advance Is Getting a Tired Look
The NASDAQ Composite has broken out to new highs again. At this point, we are 20% invested with a 3% trailing closing price stop in place for XLY. 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 were being prudent did not act on that signal. Since then the market has moved higher and our performance has lagged the averages, after being a 13-day trading range (orange lines) in upper chart. We are awaiting a decent pullback to enter the market at more favorable prices.
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Remember that you are solely 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 personal risk profile.