This was a bit of a mixed week for the Bullish Percent Indicators. Both the NYSE and NASDAQ indexes moved up. I consider this to be the most significant news for the week. The DJIA remained static as did the DJTA.
With most of the major indexes moving up, it was a bit of a surprise to see the NASDAQ 100 drop three points. This indicates there was a net drop of three stocks from the bullish ranks. Surprising in the sense that both the NASDAQ and Technology sector moved up this week. Keep in mind that the NASDAQ is loaded with tech companies.
November has been an excellent month for equities and we see this reflected in the performance of most portfolios. When I examine the Sortino numbers, it is not unusual to see a 10% gain over October.
Seven of the ten sectors are now in the over-bought territory and six of the ten are showing X’s in the PnF side of the following table. This is certainly better than where we were in the last week of October when everything was bearish.
To offset the excellent November, we now need to concern ourselves over the international incident in Iran. Is this a Middle East problem or is the U.S. involved? It certainly complicates life for the new administration.
As usual, I recommend placing tight TSLO under current holdings. I know this is not possible for those with accounts at Vanguard. Schwab and TDAmeritrade provide this option.
The NYSE continues to rise in over-bought territory. At some point there will be a reversion to the mean.
The NASDAQ follows the NYSE, although at a slightly lower value. I anticipate this graph will continue up through December unless something unusual happens on the national stage.