Bullish Percent Indicators: 7 April 2023

Three Sisters located in Arches National Park – Utah.

There was brief action this week as Staples (VDC) moved into the over-bought zone on Wednesday.  Thursday’s market action moved the BPI percentage back into the neutral zone.  Since none of the four Sector BPI portfolios were holding any shares of VDC, no sell orders were placed.

Overall, the U.S. Equities market, and that is all that is measured with the two following tables, is bullish.

Index BPI

The two primary indexes, NYSE and NASDAQ are bullish.  I prefer to watch these two indexes as they are broader than the Dow Jones Industrial Average (DJIA) and S&P 500.  However, the DJIA and S&P 500 mirror the behavior of the NYSE.

This week we have another of those anomalies where the percentage moves in the opposite direction from the PnF X’s and O’s.  Check the DJIA where the percentage increased from 56.66% bullish up to 60.0% bullish while the PnF graph switched from bullish (X) to bearish (O).  This happens when there is movement late in the week.  It is not an error in the data.  In the case of the DJIA, the entire week was strong, but weakened on Thursday, thus the move from X to O.

Sector BPI

Now we come to the BPI data we are using to manage four different portfolios.  They are:  Carson, Franklin, Gauss, and Millikan.  All four portfolios hold Energy (VDE) and if one rounds off the percentage it reaches the 70% bullish or over-bought zone.  As a result, I placed Trailing Stop Loss Orders (TSLOs) to sell all shares of Energy in these four portfolios.  Now we wait to see how this works out.

If you check out the left side of the table, the Sector BPI portfolios hold VCR, VDE, VFH, VHT, VIS, VAW, VPU, and VNQ.  In several cases the portfolios ran out of money so the shares fall short of full positions.

Explaining the Hypothesis of the Sector BPI Model

Carson Portfolio Update: 18 November 2022