It has been two weeks since I last posted Bullish Percent Indicator data. There were few changes last week and not much changed this past week. As you will see below, this is an over-bought market so it is time to be cautious. In portfolios where I added shares of a few sectors when they were over-sold, I’ve recently been placing Trailing Stop Loss Orders (TSLOs) at 3% so as to lock in profits. No sectors are currently over-sold so the buying opportunity is past until the next cycle.
Four of the seven major markets are over-bought based on the percentage of bullish stocks. It is interesting that both NYSE and NASDQ are hovering around the 50% bullish level. Not so for the more narrow indexes. This is telling me there are a number of smaller companies that are not participating in the current upward movement. Based on the NASDAQ 100 we can also assume that there are still a number of larger tech companies in the bearish camp. This observation is in conflict with the Technology sector. However, the Technology sector did take a hit this week.
With only 50% of the NASDAQ stocks in the bullish camp, there is plenty of room for upside movement.
Based on the sector information, we are seeing a strong U.S. Equities market as eight of the ten sectors are over-bought. For a broad view, check the X’s and O’s on the right side of these tables. For granular information, move to the left and check out the percentages and the changes from week to week.
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Robert Warasila says
Back when you gave us the heads up on the over sold I managed to pick up some VCR and VIS. Sold them with the 3% TSOL and made a decent profit, thank you Lowell:^ ))
Lowell Herr says
Good to hear the BPI plan worked for you. Now we need to wait for another sector cycle.