Overall, both major indexes and market sectors showed a decline in the percentage of bullish stocks. All major indexes of U.S. Equities are now in the defensive camp and all but two sectors are similarly positioned.
Index BPI: The Dow Jones Transportation Average (DJTA) is the last index to turn bearish. Of even more significance is the fact that nearly half of all stocks are bearish or at levels we have not seen for many months. While I do not manage portfolios using this data, I do take it into account in that I am paying more attention to portfolio risk and how one goes about protecting capital.
Sector BPI: Even Utilities turned bearish this week leaving only Staples and Materials in the offensive camp. Technology moved out of the over-bought zone.
As new portfolios come up for review, I’ll be setting Trailing Stop Loss Orders (TSLOs) as a way to protect capital. I have concerns over raising the debt limit and the development of a budget. Chaos in the U.S. Government is not a positive sign for a stable stock market.