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JimVanMeerten (63.02)

Weekly Market Recap -- W/E 10/15

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October 15, 2010 – Comments (0)

That time again after the market's Friday close to use Barchart to find the data for our 3 yard sticks.  3 are necessary because none of them work all of the time and each measures the market momentum in a slightly different way.

Value Line Index -- Contains 1700 stocks so its much broader than the narrow S&P 500 or very narrow Dow 30 -- Trend still upward

1 - Index up 1.26% for the week and up 6.78% for the last month

2 -  Index hit new highs in 14 of the last 20 trading sessions

3 -  96% Barchart technical buy signal

4 -  Closed Friday above its 20, 50 and 100 daily moving averages

Barchart Market Momentum -- Contains approximately 6000 stocks -- Percentage of stocks closing above their Daily Moving Averages for various time periods -- Above 50% always great

1 - Friday over 75.38% closed above their 20 DMA, over 83.16% closed above their 50 DMA, over 83.49% closed above their 100 DMA

2 -  Last week over 80.06% closed above their 20 DMA, over 84.94% closed above their 50 DMA , over 82.10% closed above their 100 DMA

3 - Last month over 78.86% closed above their 20 DMA, over 72.66% closed above their 50 DMA, over 66.38% closed above their 100 DMA

Ratio of stocks hitting new highs/new lows for various time periods - 1.0+ bullish, 1.0 neutral, below .99 bearish -- Bullish for all time periods

1 month new highs/new lows -- 1312/121 = 10.84

3 month new highs/new lows -- 901/36 = 25.06

6 month new highs/new lows -- 472/27 = 17.48

Summary and Investment Strategy -- All 3 yardsticksks showed positive trends this week.  Next week I'll still trim stocks that don't perform well and replace them as long as all 3 indicators stay positive.

Jim Van Meerten is an advisor to Marketocracy Capital Management who 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 email JimVanMeerten@gmail.com.




Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

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