Mid-day signs mixed
The mid-day signs do signal an improvement over recent market softness but please don't panic and let your emotions rule over your mind. I just want to remind you that panic buying is just as bad as panic selling. Let's see where we stand.
Value Line Index -- 1700 stocks so it's more representative than the narrow S&P 500 or very narrow Dow 30 -- mixed signals
1 - Still down 7.73% in the last 30 days
2 - Still down 4.15% for the last 5 days 60% Barchart short term sell signal
1 - Up 2.29% at noon Although the Barchart sell signals are there; they are showing a weakening
Barchart Market Momentum - mixed signals
1 - only 37.26% of the stocks are trading above their 20 day moving average -- I like to see 50%+
1 - Momentum up 1.73%
2 - Advances of 5035 vs, declines of 772
Ratio of stocks hitting new 20 day highs/new 20 day lows -- 1.0+ bullish, 1.0 neutral , under .99 bearish -- right now bullish
1 - new 20 day highs 217/ new 20 day lows 209 = 1.03 first bullish sign in awhile
Summary and Investing Strategy -- Right now the market is beginning to recover but I'm waiting until the majority of the stocks trade above their 20 day moving average then I'll slowly buy back in.
Jim Van Meerten is an investor who writes on investing on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com
Disclosure: No positions mentioned