This will be shortened blog, as is the case every other week.
Last week the market advance continued at a slower pace, but the laggard NASDAQ Composite lead the way higher with a gain of 1.61% followed by the S&P 500 with a gain of 0.81% and the DJIA with a gain of only 0.11%. Both the DJIA and Russell 2000 hit new highs during the week.
On November 15th, Indicator #8 issued a BUY signal resulting in a maximum BDH Dashboard “4” BUY signal. There were 450 new 52-week NYSE highs compared to 394 in the prior week which was a good showing. However, the number of new lows also surged to 355 compared to 321 the prior week which is strange in a rising market.
The percentage of NYSE stocks above their 50-dmas jumped again to 54.2% from 47% the prior week. The percentage of stocks above their longer-term 200-dma rose to 62.36% from 60.23% the prior week. So, overall the market has turned around to the upside based on these two indicators.
Bonds got crushed again for the second consecutive week and are now at price levels of February 2016 giving up significant gains at its peak in early July. Likewise Gold (GLD) cratered again reaching their April lows. Oil prices rose. In the above chart, please type in ETF ticker symbols IEF, TLT, BOND, SHY or AGG or others one at a time to see their current bond weekly performance, or GLD, GDX and USO and $BRENT for the other averages.
www.dark-liquidity.com/BDHV2new.php independently tracks the BDH performance. The BDH strategy performance has vertical climb turnaround since the election For the year-to-date, BDH is up 1.70% vs. a gain of 6.27% for the NASDAQ Composite, 8.28% for the DJIA, and 6.75% for the S&P 500. It has moved to 12th place out of 18 strategies followed by that website. See the “Strategies Summary” link on the top of their page.
Here is the link to the Decision Page: http://www.etfscreen.com/buydonthold/bdh-decision-page.php
Currently, 20 ETFs have a “pass” rating out of 52 compared to 16 the prior week. That shows the market’s new strength
Conclusion — Market Establishes Solid Uptrend
This coming week the market may take a breather and give back some of the gains or continue powering ahead based on financial and political news. Make sure stop limits are placed on all positions to protect principal. I am using a 5% trailing stop.
Have a Happy Thanksgiving!
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.