It was a stellar week for the Bullish Percent Indicators (BPI) as nearly every major index and sector of the market improved. The NYSE continues to be our most important index to follow and it gained several percentage points this week. As Platinum members will see in a later post, when the U.S. market is humming along as well as this one, it is extremely difficult for broadly diversified portfolios to keep pace with a benchmark such as the VTSMX. Both developed (VEA) and emerging (VWO) international markets are not keeping pace with the U.S. market (VTI).
Major Indexes BPI: Of the seven major indexes of the U.S. Equities market, only one stock in the S&P 100 fell out of the bullish designation. Other companies made up for that loss as the S&P 500 gained several percentage points and moved back into the oversold zone (70% or higher). For the fifth straight week all indexes are controlled by the offense (X’s in right-hand column).
Sector BPIs: Sectors of the equities market followed the major indexes as this is the third straight week for all sectors to be under control of the offense. Discretionary, Telecom, and Utilities held even while all others gained ground. With the majority of sectors now considered to be over valued, it is time to be patient and careful with new purchases.