With few exceptions, equities were slaughtered this week. As for the major indexes, the S&P 500 took a particularly hard hit as only 33 of the 100 stocks are now bullish. How this impacted the ITA portfolios is yet to be determined as dividends will be distributed this week. Once the first quarter data is available we will be able to better access the damage this week inflicted on our portfolios. It has not been a pretty week.
Index BPI: The single puzzling question is – why did the NASDAQ not flip over to the defense? I can only assume it was market action on Friday that caused this high tech index to remain on offense. Every other index took a significant hit. Large-cap stocks plummeted as we see from the DJIA percentage.
Sector BPI: Sectors of the market did not fare much better than the indexes. Stocks in the Telecom and Utilities, two stable sectors, did not budge. Energy bucked the downward trend, but otherwise, there were significant draw-downs. All sectors are now out of the over-bought zone. This occurs when 70% or more of the stocks are coded bullish.
Expect to see many portfolio reviews this coming week as I will be looking over the impact this past week had on the ITA portfolios.