This will be a shortened blog, as is usually the case every other week.
Note that an interim blog post on September 17 corrected my inadvertent error of not seeing the SELL signal on Indicator #8 resulting in a BDH Dashboard SELL signal on September 14. Accordingly, all ETF positions were sold out on the open on September 18, whereas they would have been sold on the open on September 17, if I had not missed the signal. I apologize for the obvious oversight on my part. Subscribers were notified about this blog immediately after it was posted.
The stock market had a mixed performance. The S&P 500 and the DJIA hit all time highs, while the NASDAQ receded a bit. For the week, the DJIA was the leader up a solid 2.25%, followed by the S&P 500 up 0.85%, and the NASDAQ’s loss of 0.29%. Of particular concern is the NYSE 52-week highs numbering 217 and new lows of 231, both a bit lower than the week before. The number of new highs is very low in a market at all time highs. This indicates that many stocks are not participating in this market surge.
Gold miners (GDX) soared 4.45% and oi l(USO) jumped 3.17%. TLT fell 1.22%.
The number of NYSE stocks above their 50-dmas rose to 58.95% from 54.74% a week earlier. And the number above than their 200-dmas rose to 60.85% from 58.59%. On ETFscreen.com, the Decision Page indicated that 19 ETFs has “fail” ratings, a large increase from a week earlier and not expected at market at its highs. And 6 of the top 30 ETFs had a “fail” rating. All this data indicate a weak underlying market. The next four weeks historically speaking have been negative overall. We will see what happens this time around. We will await our next BUY signal.
Top-5 ETF table with latest numbers is provided here: Top 5 ETF September 21,, 2018
Our strategy is now 100% cash as a result of the sales on Tuesday morning. Our strategy lost 0.21% from the date of the last purchase date compared to a gain of 0.65% for the three major averages.
Hold tight and be very careful here. Note the Bearish Engulfing candle on Friday on the upper chart and the large daily volume, probably due to triple-witching.
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.