BarChart Weekly Stock Market Momentum Indicators W/E 8/28/09 CODE GREEN
At the end of each week I look to BarChart to test the Tides and see which way the Tide is flowing. This week the tides seems to be flowing in an rising trend so there is still a CODE GREEN meaning that it looks like a good time to be in the Stock Market.
Let's take the 3 indicators I follow and see what they say;
Value Line Index - This is an arithmetic index of the 1700 largest stock followed by Value Line. These 1700 stock make up over 95% of entire US stock market capitalization.
BarChart's Opinion is very postive on the Index and gives it a 96% Buy signal
Is the Index trending above it's Daily Moving Averages:
20 DMA Above50 DMA Above100 DMA Above
All 3 look good
Next I check the BarChart Market Momentum page to see how many stocks are trading above their Daily Moving Average:
20 DMA - 66% are trading above50 DMA - 83% are trading above100 DMA - 87% are tradign above
This is a very good sign
Next I see that the ratio of stocks trading at new highs to new low for 3 time periods:
20 day - 1200 highs/316 lows = 3.8 positive ratio65 day - 980 highs/111 lows = 8.83 positve ratio100 day - 916 highs/72 lows = 12.72 positive ratio
All 3 periods have many more new highs than new lows - a very positive sign
Since there don't appear to be any mixed signals in my 3 indicators I'm going to continue my CODE GREEN; It's OK to invest in the market and stay fully invested in your 401K