This week I am showing a different form of Point and Figure (PnF) graphs for the NYSE and NASDAQ. These are the two primary indexes I follow when examining Bullish Percent Indicator data.
Bullish Percent Indicators of NYSE
As you will recall, an index or sector is over-bought when the bullish percentage reaches or exceeds 70%. As you can see in the graph below, that percentage is not reached frequently. The over-sold condition is when the bullish percentage drops to 30% or below. Once more, that does not happen frequently.
When the over-sold conditions shows itself, it is time to back up the truck and load up with U.S. Equities such as VTI or similar equity securities.
Bullish Percent Indicators of NASDAQ
If one were to lay the NASDAQ graph on top of the NYSE, there is a high correlation. When the NASDAQ drops below 30% bullish stocks, use all available cash to buy QQQ. It is quite simple. When the percentage reaches 70% or higher, make sure you have a TSLO set for the security.
* The Sturgis, South Dakota motorcycle rally begins this weekend with masks an option. With thousands of “vectors” milling about, expect to see new Covid-19 outbreaks around Labor Day. As my good friend frequently states – “There is no cure for stupidity.”