This will be a shortened blog as is the case every other week.
The stock market has declined fromthe highs during the week of July 24. This week’s big decline on Thursday was followed by a tepid rebound on Friday. So the short-term trend is down.
There are still many stocks not participating in this rally. The number of new 52-week NYSE highs contracted by 50% over the past few weeks to 164 (from 259 last week), while the number of new lows totaled 245, thereby exceeding the number of new highs for the first time in many months. Also, the percentage of NYSE stocks below their 200-dma has declined to 55.55%, and the number of NYSE stocks below their 50-dmas has declined to 39.53%.
The NASDAQ has declined during the past three weeks and the DJIA has declined the past two weeks. Use ticker $indu and $spx in the accompanying chart to see the performance of the other two major averages. You can also change the daily chart to weekly at the upper right in the “period” box. Oil rallied big time up 4 to 5%, fixed income ETFs advanced slightly after a big drop on Tuesday, and GLD and GDX fell slightly.
For the week, the DJIA lost 0.84%, the S&P 500 lost 0.65%, and the NASDAQ Composite lost 0.64%. For the 2017 year-to-date, the DJIA has gained 9.67%, compared to 8.34% for the S&P 500, and a 15.48% for the NASDAQ which is still the big leader among these three indexes year-to-date. The BDH strategy has lagged the market up 7.11% for the year. The BDH portfolio is 80% invested and 20% in cash with trailing stop limits in place.
To see the current portfolio and its performance check out the dark-liquidity link:
This may be the beginning of the summer/autumn decline as both the NASDAQ and S&P 500 have dropped below their respective 5o-dmas. We will wait and see what happens, as no one can predict what will happen next.
Be careful and have your trailing stops in place,
Have an enjoyable summer week ahead and try to stay cool.