What information can be gleaned from index and sector Bullish Percent Indicators (BPI)? As mentioned in prior blog posts, BPI data does not play a major role in portfolio management until we witness over-sold percentages as readers can decode in the following tables. It is rare to see all indexes and sectors in the over-sold zone. Over-sold is when the percentage of bullish stocks, using Point and Figure (PnF) graphs, drop to 30% or lower. June 17th of 2022 was such a date.
Index Bullish Percent Indicators
All seven indexes are over-sold. The NASDAQ 100 did manage a slight upward bump on Friday as you can see when looking at the right side of the table. However, for more precise information, check the percentage of bullish stocks on the left side and we see where only 10% of the NASDAQ 100 are bullish. That translates to 10 bullish stocks.
Pay most attention to the NYSE and NASDAQ as those are the two largest indexes. Next in importance is the S&P 500. In the S&P 500 we have approximately 58 bullish companies.
Sector Bullish Percent Indicators
There are bearish periods when one or more sectors buck the downward trend. That is not true this week as all sectors are over-sold. Yes, Health and Technology did revive slightly on Friday, but for the week, both sectors are still deep in the ditch.
Investors interested in taking advantage of the over-sold conditions will find Vanguard and iShares tickers listed below. I did not find iShare sector tickers for Discretionary and Telecom. This is not a problem as I favor Vanguard ETFs for price and the philosophy behind the Vanguard family. By holding Vanguard ETFs you are a part owner of Vanguard.
Even with the current over-sold conditions, the U.S. Equities market could decline further. However, at some point we will see a rebound. If cash is available, this is a time to begin setting numerous limit orders at various prices below the current price.
As an aside, note that the Schwab inflation protection ETF, SCHP, is throwing off a dividend in excess of 15%. This is hard to pass up and I’ve been picking up shares for owners of several portfolios.
This coming week two Dual Momentum™ portfolios are scheduled for review as is one Income portfolio.