All major markets are under the control of offensive teams for the first time since last August. On the semi-negative side, all indexes are now well into the over-valued zone or above 70%. Considering what we have been through this past week, I’ll take it and not complain one bit.
Major Market BPI: Everyone of our major markets snapped to attention as the debt crisis was finally avoided. However, we may go through this farce once more in a few months so remain on guard. While I do not use any of the following data to manage portfolios, I continue to maintain these data tables as a way to view the markets from “30,000 feet.” The BPI data provides a good overview of what is going on from week to week and this past week was a good one.
The primary BPI is the NYSE and it is going great. The only thing I would wish for would be for the numerical value to be down in the 30’s as this would signal a beginning bull market. But as they say – beggars cannot be choosers.
Sector BPI: As usual, the individual sectors follow the major indexes. The one exception is Staples, where the percentage of stocks showing bullish signs increased, but the week ended with O’s in the right-hand column. Last week this happened, but in the reverse direction. This is a bit unusual and I can only assume the data is correct. This is one sector to watch over the next few weeks.
Health and Utilities continue to be under control of the defensive teams. Of all the sectors, Telecom and Utilities are the slowest to make any changes and as a result, I pay little attention to them.