Bullish Percent Indicators: 29 September 2023

Rim Village – Crater Lake

There are no surprises this week in the world of Bullish Percent Indicators.  With the U.S. Government about to “close” investors need to be prepared for a rocky October.  Sane minds will eventually prevail, but until voters penalize childish behavior significant elements of our society will continue to suffer.

Earlier this week I pointed out sectors that are oversold.  That information continues as you will see in a moment.  What we need to pay attention to is the likely possibility that four more sectors are poised to join the oversold group.

Index BPI

All seven major indexes are now well below the 50% bullish line indicating we are in a weak period for U.S. Equities.  There was enough action during the week to move the NASDAQ 100 back into bullish territory.  If one were to remove energy stocks from the indexes we would see even lower percentages in the NYSE and NASDAQ, the two primary indexes.

Sector BPI

Earlier this week I mentioned that Utilities and Real Estate dipped into the oversold zone.  This brings five of the eleven sectors into the purchase zone.  If you are managing a Sector BPI Plus portfolio, check your holdings to see if the portfolio is holding shares in these five sectors.

I plan to update the sector section of the BPI spreadsheet each day so look for Comments in this blog should any changes take place.  I’m paying particular attention to Industrial, Materials, and Technology, sectors that are close to the oversold zone.  The Sector BPI portfolios I’m tracking already hold Communications (VOX).  The two new accounts, Bethe and Bohr may not hold VOX and if this is the case I will purchase that ETF should it drop into the oversold zone.