No subscriber BDH interim update is expected this week as the BDH Dashboard is not nearing a BUY signal. Any positions owned by aggressive investors should be tightly managed with stop limit orders to protect principal.
If you were not looking at the market until the Friday close last week, then you would have figured that not much happened as the DJIA was up 0.41%, the S&P 500 up a measly 0.02%, and the NASDAQ Composite down -0.64%. However, if you looked at the daily price action there were wild swings of hundreds of points in the DJIA, and comparable swings in the other two market averages.
As the accompanying chart show, the NASDAQ is now 68 points below its critical 200-dma. The big rally on Tuesday dissipated by week’s end. The 200-dma will now act as resistance until it is solidly pierced to the upside.
TLT — iShares 20+ Year Treasury Bond ETF — down 0.65% for the week, IEF also fell 0.17% for the week. Gold miners (GDX) rallied 1.32%, GLD was up 0.70% and oil (USO) declined 2.71%, while $BRENT got knocked down 1.63%.
The NYSE 52-week lows this week of 558 was down from 875 the prior week. The number of new 52-week highs at 54 fell from 93 fell the prior week. Note that about 75% of the new lows were fixed income related securities such as preferred, debentures, REITs, munifunds, and closed end funds. These are not typical equities and they hit new lows when interest rates rise. Thus, the number of new lows is actually not a cause for concern. The new 52-week highs list is all regular equities, so that is a true indicator of the new equity highs..
The number of NYSE stocks above their 50-dma improved to 18.90% from its prior week’s low of 14.47% which was its lowest reading since January 2016. And the number of stocks above than their 200-dmas increased slightly to 35.69% from to 35.02% the prior week, also the lowest reading since March 2016.
Indicator Review – No Changes
The BDH Dashboar remains on a “0” maximum SELL rating.
Year- to-date, the BDH strategy is up 2.63% compared to 2.93% for the DJIA, 3.52% for the S&P 500, and 7.90% for the NASDAQ Composite. I was able to open this website after two weeks of non-access. The owner probably had it down for maintenance. So it is back up again and I will be referencing it going forward, as usual.
BDH Decision Page – BDH Dashboard ETFs
Here is the link to the Decision Page. Copy and paste it into your browser:
On ETFscreen.com, the Decision Page indicated that 35 ETFs had “fail” ratings, an increase of 1 from the last two weeks. That means that 79.5% of the ETFs have a”fail” rating out of our 44 ETF universe. And only 4 of the top 30 ETFs had a “pass” rating. Those were XLU,XLP, TBF, and DBC.
Conclusion — Market Takes a Breather in Wild Week
We will wait for our next BUY signal. That usually takes awhile as the market turns up. The market may rise 5% from the lows before a BDH buy signal is given. Stay 100% in cash for now.
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 email@example.com. Please click on the following link for subscription details: BDH Request for Support March 23, 2018
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.