European window dressing
Bullish Percent Indicator (BPI) data is only published when I feel there is critical information essential to readers of ITA Wealth Management. This is such a week as Friday’s selloff did not do as much damage to the U.S. Equities market as one might surmise. At least that is what the Point and Figure (PnF) graphs are telling us. Examine the following data tables and make your own decision.
Index BPI
This first data table breaks U.S. Equities into seven major indexes. Yes, there is overlap between the indexes and that is why I remind readers to rank them in importance. NYSE and NASDAQ are the most important as they are broad indicators. Next is the S&P 5oo followed by the DJIA. This week all indexes are bearish. The NASDAQ 100 took the biggest hit, but still contains more bullish stocks than it did back in early May. If you check the percentage of bullish stocks on the left side of the table, May was the time to back up the truck and begin to purchase stocks.
Sector BPI
In the following table we break the large indexes into sectors of the market. While most sectors show lower percentages of bullish stocks, there are fewer sectors over-sold compared to May data. This week Health (VHT) is a Buy. Here is a suggestion as to how to handle this information.
- Assuming cash is available, set multiple limit orders to purchase shares of VHT at different price levels.
- If the limit orders are struck, hold on to those shares until VHT moves above the 70% bullish level or what is known as the over-bought zone.
- When the sector ETF reaches the bullish zone, set a tight (around 5% is a suggestion) Trailing Stop Loss Order so as to lock in profits.
- Wait until the market cycle repeats itself and do the same thing again.
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Hi, Is there a link to see these spreadsheets when they are updated each week?
Thanks, Mark
Mark,
As a Lifetime member you can see the screenshots of the Bullish Percent Indicators, but I don’t make the spreadsheet available.
If you want to make sure you don’t miss any of the BPI blog posts, use the magnifier in the upper right-hand corner of the page and type in Bullish Percent Indicators. That will bring up the most recent posts.
If you want to go back and check oldest to newest, use the Catalogue menu found in the right sidebar. I don’t know how far back BPI posts go as I’ve been culling the oldest posts from the blog.
Lowell
You mention at the first of your post that you do not publish this regularly. I would just like to see it on a weekly basis as it is updated. Is that possible?
Mark,
I can do that.
Are other readers interested in seeing regular posts of the BPI data?
Lowell
Bullish Percent Indicators as of 6/13/2022 are bearish. All indexes are currenty in the over-sold zone ( <30% bullish) and all sectors but Energy and Telecom are also bearish. Energy dropped out of the over-bought zone and Telecom is very close to showing a bearish (30.43) position.
If cash is available now is the time to place limit orders even if it is for as few as 5 shares.
Example: Assume a security is price at $100/share and limited cash is available.
1. Place a limit order to buy 5 shares at $97/share.
2. Place a second order to purchase 10 shares at $92/sh.
3. Place a third order to purchase 15 shares at $87/sh.
These are examples, but continue to move down the price scale. It is unlikely we will see a 30% drop from this point, but it could happen. I have a few limit orders for ESGV set at very low levels should we see a severe bear market. With a strong economy, this seems unlikely as consumers are still spending.
Higher interest rates will slow Real Estate so I am not high on VNQ. When you update prices using the Kipling spreadsheet, pay attention to what VNQ is telling you. If you are using the Dual Momentum model, VNQ is not an issue as it is not part of the investment quiver.
Lowell