Bullish Percent Indicators: 17 May 2024

Oregon City Falls

Bullish Percent Indicator (BPI) data points to another strong week for U.S. Equities.  While Energy dropped out of the overbought zone, two other sectors moved above the 70% critical bullish line.  The month of May is off to a much better start than anticipated.

Index BPI

The S&P 100 joined the two Dow indexes as overbought and the S&P 500 is not far off the mark.  I hope everyone was able to read the warning from Ray Dalio.  Check the Forum for the link.

While I have TSLOs set for sectors when they move above 70% bullish, I’ve also been setting TSLOs on other investments as a precaution should we experience political upheaval.

Sector BPI

This week Materials and Real Estate joined Financials and Utilities as oversold.  TSLOs have been in place for VPU for a number of weeks as all the Sector BPI portfolios hold this sector.  The other major holding is Staples (VDC).  VDC has been part of many portfolios for a number of months.  From the table you can see we purchased this sector ETF back in 2023.  The same is true for Materials (VAW), but we sold this ETF many months ago when it first moved into the overbought zone.

If you are using the Sector BPI investing model, check your portfolio to see if you are holding shares in VFH, VAW, VPU, or VNQ.  If you are, and have yet to set a 3% TSLO, do so this week.

Explaining the Hypothesis of the Sector BPI Model