This will be shortened blog, as is the case every other week under normal market conditions.
After the stock market got crushed for second consecutive weeks, it experienced a solid relief rally with gains of 4.25% – 4.30% for the DJIA and S&P 500, respectively. This was the SP500’s best weekly gain since 2013. The NASDAQ did even better rising 5.31%, its best gain in 7 years. All three averages are above their 50-dmas which is quite an accomplishment in such a short time.
The BDH Dashboard remains on its “1” SELL signal, but Indicator #5 (see upper) is getting close to an MACD BUY signal (green circle). Likewise, Indicator #8 (lower chart) did have a positive crossover on the upper part of the chart, but needs an MACD crossover as well before this indicator triggers a BUY signal see second chart and blue circle area. If the stock market continues its advance by at least 3% more next week, then both indicators will trigger a BUY signal and the BDH strategy will be on a “3” BUY signal. Be on the look out for that signal this week b y checking these two charts which you should have bookmarked.
Dark Liquidity BDH Performance Statistics
www.dark-liquidity.com/BDHV2new.php independently tracks the BDH performance. For the year-to-date 2018, BDH is up 2.79%. The DJIA is up 2.02% YTD, S&P 500 is up 2.19%, and the NASDAQ is up 4.87% BDH strategy is in 8th place out of a 22 strategies followed by that website. Strategies using the QQQ where higher performers. See the “Strategies Summary” link on the top of their page.
BDH Decision Page – BDH Dashboard ETFs — Note Change Below
Here is the link to the Decision Page. Copy and paste it into your browser:
Currently, there are only 8 “passes” out of 52 ETFs, and 3 “passes” in the top 10 with those being VGT, XLY, and PBW.
Conclusion — Market Rallies Back Big Time But Caution is Urged
Last week I said the following: ” Remember, that if the market rises by 5% or more next week, the BDH strategy will not have had enough time for the indicators to issue a buy signal. Therefore, if you want to act before the next buy signal that is certainly your call. I am not making a recommendation, but making it clear that the BDH signal is delayed until the market starts to reverse and the indicators are in sync with the market’s direction.“
That was certainly what occurred. I am somewhat concerned with the Doji candle (red circled area) on the upper chart as it means indecision and a possible reversal in the NASDAQ Composite.
If you bought into the market early last week that was a good move, so far. My concern is that the market may go up for a few days and then tank again to new lows. It would be a concern to take a possible BDH “Buy” signal this coming week, as the quick run-up could easily reverse downward. We’ll have to wait and see what happens, and then decide how to go forward. Be very careful here as the market tends to fake out most investors most of the time.
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 and certainly right now. 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.