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JimVanMeerten (65.29)

Jim Van Meerten - BarChart Weekly Stock Market Indicators W/E 9/4/09

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September 05, 2009 – Comments (1)

This was a pivotal week. The Market was down for the first 3 days but came back the last 2 closing slightly down. As measured by the Value Line Index we were down a net of 1.41% for the week.

1 - Value Line Index - I use this index because it is a broad arithmetic index covering 1700 of the largest stocks on the exchanges. Better that 95% for the entire US market capitalization.

BarChart evaluated the index as an overall 56% BUY with their short term indicators a 60% BUY - Good signThe Value Line Index trended above it's 20, 50 & 100 Day Moving Average - Good sign

The Value Line Index is still trending in a positive upward trend

2 - BarChart Market Momentum - This week BarChart monitored 5900+ stocks

Percentage of stock trading above their Daily Moving Averages:

20 DMA - 57%50 DMA -78%100 DMA - 84%

Since better than 50% all stocks are trading above their DMAs a good bullish sign.

 

3 - Ratio of New Highs to New Lows - When there are more new highs than new lows that's a bullish sign

20 day new high/ low ratio - 655 highs/336 lows = 2.0165 day new high/ low ratio - 470 highs / 239 lows = 1.97100 day new high/ low ratio - 432 highs / 51 lows = 8.47

Since the ratio is positive for all three time periods that's a bullish sign.

 

Summary: Although the market was down for the week and all trends were not as strong as last week we still feel that its a good time to be invested in the stock market and in your 401K

 

Code Green - investors have a green light to proceed.

Financial Tides

1 Comments – Post Your Own

#1) On September 05, 2009 at 12:17 PM, awallejr (75.87) wrote:

Well volume should be coming back this week now that the summer is over.  Will be interesting to see how volatile it will be and the direction of the swings.  Everyone is expecting down, including me, so it will probably be up;p

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