Bullish Percent Indicators: 16 June 2023

Crystal Springs – Portland, OR

Bullish Percent Indicators (BPI) for this week will bring changes in a few Sector BPI Plus portfolios as the Industrial sector moved into the overbought zone.  A Trailing Stop Loss Order is called for if you are holding either VIS or IYJ in the portfolio.

Index BPI

Overall, this was a good week for U.S. Equities as all major indexes ended up higher than they were last week.  Two indexes are now overbought as you can see in the left side of the following table.  The Dow Jones Transportation Average took a huge jump while the NASDAQ 100 is also in the sell zone.

Sector BPI

Of the eleven sectors, two are calling for a sell or TSLOs to be set.  I know that Technology VGT or IYW is not part of any of the four Sector BPI Plus portfolios I track so I can move past that recommendation.  Not so for the Industrial sector.

Since the BPI for Industrial is 82.89% we can round this to 83%.  If you are holding VIS in a Schwab account I recommend setting a TSLO at 1.7%.  Some brokers such as TD Ameritrade will not permit decimal settings for TSLOs so in that case set the TSLO at 2.0%.

The general rule is as follows.

• If the Bullish Percent Indicator is in the 70% range, set the TSLO at 3%.
• If the BPI is in the 80% range, set the TSLO at 2%.
• If the BPI is in the 90% range, set the TSLO at 1%.

Several of the Sector BPI Plus portfolios are holding VIS so TSLOs were set to sell off those holding.

Explaining the Hypothesis of the Sector BPI Model