Long exposure of old pilings of salmon factories along the Columbia River.
The last Bullish Percent Indicator data was published a month ago. At that time Energy, Health, and Materials were part of the Sector BPI portfolios. This week we add Technology to the oversold group. If cash is required to populate Technology I will first sell shares of SHV and then VOO.
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Index BPI
Of the seven major indexes I track, Dow Jones Transportation Average (DJTA) is oversold, although it did bump up on Friday to where the BPI indicator is currently bullish. Note the X at the bottom of the DJTA column.
This table is included to give investors a broad view of what is going on in U.S. Equities. I pay most attention to the percentages of NYSE and NASDAQ.
Sector BPI
Now we come to data used with the Sector BPI portfolios. The three Sector BPI portfolios are: Carson, Franklin, and McClintock.
All this BPI data comes from StockCharts. As a review here is a quick summary as to how the Sector BPI portfolios operate.
- If a sector moves into the oversold zone we purchase shares in the ETF that represents that sector. Oversold is when the sector drops to 30% of the stocks in that sector are recorded as bullish.
- If a sector moves into the overbought zone we place a 3% Trailing Stop Loss Order on the ETF representing that sector.
- When excess cash is available we invest in either VOO or SHV.
To gain a better understanding of this investing model I encourage readers to closely follow one or more of the Sector BPI portfolios. To help readers understand this model I will post a blog laying out the strategy for the Franklin. Once the market opens on Monday I will raise sufficient cash to purchase shares of VGT as that is the ETF which represents Technology. The Franklin currently hold shares in Materials, Energy, Health, and Real Estate.
Questions and Comments are always welcome.
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Based on the latest BPI data no changes are recommended. Sector BPI portfolios will continue to hold Discretionary (VCR), Energy (VDE), Health (VHT), Materials (VAW), Technology (VGT), and Real Estate (VNQ). As of 3/21/2025 Discretionary is the only sector still in the oversold zone. Energy, Materials, and Technology moved out of the zone this week.
Utilities is overbought, but we don’t hold shares in VPU.
Of the major indexes, all are bullish with exception of the Dow Jones Transportation Average.
Lowell
Energy (VDE) moved into the overbought zone today (3/26/2025) so the recommendation is to place a 3% TSLO under VDE. Since the BPI percentage is 73% I placed a 2.7% TSLO under VDE.
Thanks to Bob W. for tipping me off to this big upward move today.
Lowell
No significant changes in the BPI data this week. Materials and Technology dropped back into the oversold zone, but we are already holding both sectors. Energy is overbought and TSLOs are in place to sell shares so that sector is covered.
Utilities dropped out of the overbought zone, but we are not holding shares of VPU.
No changes required at this point.
Lowell
The Industrial sector dropped into the oversold zone this morning. I will likely wait another day before placing any Buy orders as this market likely has further to decline.
Lowell