Bullish Percent Indicators: 10 January 2025

Llama fascinated with camera.

Based on the slamming U.S. Equities experienced yesterday and most of this past week I thought it best to see how the Bullish Percent Indicators (BPI) data reacted.  Would any new sectors show up as a buy or did any sectors dip below the 30% bullish marker?  Turns out one sector did dip into the oversold zone so we will be picking up shares next week for the Sector BPI portfolios.  Read on to see which sector we need to add to each Sector BPI portfolio.

Index BPI

All but the Dow Jones Transportation Average (DJTA) are bearish or are showing O’s when we check the Point and Figure graphs.  No indexes are oversold, but several are close.  Should we duplicate this past week next week I would expect at least one index to move into the oversold zone.

Sector BPI

Sectors tend to be more volatile than the broad indexes since they are made up of fewer stocks.  The Sector BPI portfolios currently hold Energy, Health, and Materials.  Real Estate is the latest oversold sector.  Next week I will add shares of VNQ to the Sector BPI portfolios.  If cash is not available I will first sell of shares of VTI and ESGV to raise cash.  If these transactions do not raise sufficient cash I will be “required” to sell shares of VOO.

Equities have not been performing well since the U.S. elections.  Seems as if the market is beginning to foretell chaos in the future.

Explaining the Hypothesis of the Sector BPI Model