Weekly Market Recap -- 12/10
Every week end we go back to the data on Barchart to see what really happened in the market. Using the numbers instead of the headlines gives us a much better picture of the state of the market. I use 3 different market momentum indicators because they each measures market momentum in a different way and each is not always right 100% of the time.
Value Line Index -- Contains 1700 stocks so its more representative of the market than the S&P 500 or very narrow Dow 30 -- Very positive this past week
1 - 100% Barchart technical buy signal
2 - Up 2.16% for the week
3 - Up 4.54% in the last month
4 - Friday closed above its 20, 50 and 100 day moving averages
5 - Relative Strength Index 73.36% and rising
Barchart Market Momentum -- Contains approximately 6000 stocks -- Percentage of stocks closing above their Daily Moving Averages for various time frames -- Above 50% is always good
1 - Friday 70.62% closed above their 20 DMA, 66.63% closed above their 50 DMA, 76.62% closed above their100 DMA
2 - Last Week 65.74% closed above their 20 DMA, 67.00% closed above their 50 DMA, 77.27% closed above their 100 DMA
3 - Last Month 65.48% closed above their 20 DMA, 76.36% closed above their 50 DMA, 82.22% closed above their 100 DMA
Ratio of stocks hitting new highs/new lows for various time frames -- 1.0+ bullish, 1.0 neutral, below .99 bearish -- Very nice numbers this week
1 month ratio of new highs/new lows -- 1229/186 = 6.61
3 month ratio of new highs/new lows -- 892/70 = 12.74
6 month ratio of new highs/new lows -- 721/38 = 18.97
Summary and Investment Strategy -- The market is looking very good. This week look at all your investments; 401Ks, IRA, Annuities, Mutual Funds and Stocks and consider being fully invested in equities. I have previously cautioned you to stay away from sovereign and municipal debt because of the threat of capital depreciation and default. Interest rates are moving up so locking into long term bonds or CDs might be a mistake. On the plus side housing prices are down and mortgages rates are low but moving up.
Jim Van Meerten is an advisor to Marketocracy Capital Managementwho uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or emailJimVanMeerten@gmail.com.
Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.