Over the past two weeks the U.S. stock or equities market shifted from bearish to bullish. We observe this when examining the large market indexes (top screenshot) as well as sectors (bottom screenshot) of the market. How might one use this information if the portfolio contains any of the sector ETFs?
Only the NASDAQ 100 showed a percentage decline this week sufficient to move the signal from X to O. Otherwise, all indexes are bullish and all show a percentage increase in the number of bullish stocks.
Back on June 17th all sectors were over-sold and some readers may have investing in one or more of the over-sold sectors. If so, this week we see six of the ten sectors are over-bought. It is time to go through portfolios and see if any sector ETFs such as VCR, VDC, VDE, VIS, VGT, or VPU are one of the holdings. If so, consider setting a TSLO at 3% in order to lock in profits. The 3% is only a suggestion. Choose your own percentage.