Bullish Percent Indicator Data: 5 January 2024

Township Hall – Waterloo, Canada – Monet style

The following two data tables provide or inform us as to the weakness in U.S. Equities.  While there are still plenty of overbought indexes and sectors, the direction this past week was down.

Check the center footer to see what portfolios are coming up for review this week.  It will be a full week of updating portfolios, including the Schrodinger on Monday.

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Index BPI

The two broad indexes, NYSE and NASDAQ have yet to reach the overbought zone.  It has been months since we experienced a robust bull market involving smaller cap stocks.  The five indexes to the right are more indicative of the behavior of large-cap stocks and those have done very well.  When an index moves from bullish to bearish the change is generally a 3% shift or more.

Sector BPI

The following sector table is where we find guidance for managing the Sector BPI portfolios.  No sectors are in the oversold zone so there are no buying opportunities for sector ETFs.  When this is the situation and a portfolio holds cash, we look to our U.S. Equity ETFs such as VTI, VOO, and ESGV.  This will most likely be the situation for the five portfolios up for review this week.  My guess is that the best decision will be to place purchase limit orders to use up available cash.

When last checked, ESGV was the highest ranked ETF of the three stated above, followed by VOO.  Since SPY (mirror of VOO) is the benchmark, I am somewhat partial to adding VOO when cash is available.

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