Bullish Percent Indicators: 7 July 2023

Painting of author making a photograph in Peru

Based on Bullish Percent Indicators (BPI) the equities market this past week was flat to a trivial uptick.  No new instructions for managing Sector BPI portfolios show up this week.  With the prospect of two more 25 basis point increases in the interest rate this year, don’t expect to see much out of U.S. Equities.  We are in a waiting or patience trying period.

Index BPI

One company turned bullish this week as we can see from the S&P 100 and NASDAQ 100 data.  While one cannot be sure, it was likely the same company.  The big jump showed up in the Dow Jones Transportation Average (DJTA) as it moved from 85% bullish to 95% bullish.  There is little more upside available to this index.

With the NYSE and NASDAQ, our two very broad indexes, hovering around the 50% bullish level we know small- and mid-cap stocks have yet to push the U.S. stock market forward.  Their time is coming, but don’t expect to see a bull market until those two indexes move upward.

Sector BPI

No significant changes in the sectors since last week.  Real Estate was sold out of several Sector BPI portfolios despite the fact that this sector actually moved up.  A few down days this week brought about the sale of VNQ.  Readers will see this when the various Sector BPI portfolios are reviewed over the next few weeks.

Cash from the sale of VNQ will be reinvested in recommended ETFs based on results from the Kipling spreadsheet.  Explanations will follow when updates occur.  I’ll likely review one of the Sector BPI portfolios later this morning so readers gain a better understanding of what I’m talking about.

Explaining the Hypothesis of the Sector BPI Model

Carson Portfolio Update: 18 November 2022

The two links above provide some context for managing Sector BPI Plus portfolios.