Bullish Percent Indicators: 21 December 2023

Winter Solstice Helleborus

Last week eight of the eleven sectors were overbought.  This week there are nine so investors using the Sector BPI investing model will want to check to see which sector moved above the 70% bullish mark.  Not since last July have we come close to this many bullish sectors.  All the major indexes are bullish and we are beginning to see some of the smaller cap stock participate in this market.  For that information pay attention to the NYSE and NASDAQ.

Index BPI

Both the NYSE and NASDAQ showed modest growth in the percentage of bullish stocks.  All indexes improved this week in the number of bullish stocks.

Sector BPI

Communications (VOX) joined the overbought group this week.  I placed TSLOs on VOX in portfolios holding this sector ETF.  With 75% bullish where possible I set a 2.5% TSLO.  Schwab permits setting decimal TSLOs so I took advantage of that option.  With the market this high now seems an appropriate time to protect capital with TSLOs.  While not a huge fan of TSLOs I like the idea that the sell point rises as the price of the security increases and holds steady as the security price decreases.

Over the past few weeks TSLO prices were struck for VPU and VNQ so those two sectors have not been playing a role in most of the Sector BPI portfolios I track.

Here in the Northern Hemisphere we passed the Winter Solstice and are looking forward to Spring.  Due to our political unrest 2024 could be a bumpy year for U.S. Equities and for that reason I am in a capital preservation mood.