Bullish Percent Indicators: 3 November 2023

Ships at anchor on Columbia River. Pilings are remnants of fisheries.

Based on Bullish Percent Indicator data this past week was an excellent one for U.S. Equities.  This week was the time to be fully invested as all indexes and sectors moved up.

Index BPI

Every index flipped from bearish to bullish this week and all but the Dow Transportation Average moved out of the oversold zone.  A contrary investing model worked in favor of those employing this approach.

Sector BPI

The sector action will have some impact on certain portfolios.  If your portfolio holds Energy (VDE), place a 3% Trailing Stop Loss Order (TSLO) on that ETF as Energy is overbought.

Only two sectors remain oversold and they are:  Staples (VDC) and Materials (VAW).  It is now time to let VCR, VHT, VIS, VGT, VPU, and VNQ run until they move into the overbought zone.  That may take a few months.

If the portfolio is holding cash there are a few options.  1) Remain in the money market.  2) Set limit orders to pick up more shares of VOO.

This coming week I’ll review several Sector BPI portfolios so readers can follow how I am handling the current market.  In most cases I was able to reposition portfolios that are moving from the Relative Strength model over to the Sector BPI Plus model.  The last few weeks was a good time to be investing in sector ETFs.  Now we need to wait and see how the different sectors compete with the broad market or SPY.

Portfolios up for review this next week are:  Bethe, Pauling, Einstein, Franklin, and Carson.  It will be an active week in one sense, but I don’t expect much if any trading will occur.