NASDAQ 9576.59 -154.59 or -1.59% for the week
BDH Dashboard Remains on “3” BUY Signal
The three major market averages had a down week, its third out of the last four. The NASDAQ in particular, took a big hit Thursday and Friday. It cut its losses in half on Thursday, but got clobbered on Friday, closing near the lows of the days. See the two big red candles on the first chart below to see the damage. Interestingly, the markets made new all-time highs on Wednesday, so this latest decline may be temporary or may work its way to test the 50-dma line at 9228.07 for the NASDAQ or move even lower.
For the week, the NASDAQ Composite lost 1.59%. The S&P 500 dropped 1.25%, and the DJIA fell 1.28%.
For the: 2020 YTD
S&P 500 3.31%
BDH Strategy 3.48%
Thus far, the BDH strategy is ahead of the S&P 500 and DJIA.
Market Internals Strengthen This Past Week
The percentage of the NYSE stocks above their 200-dma declined slightly to 64.81% from 66.85% the prior week. More importantly, the percentage of NYSE stocks above their 50-dmas also decreased to 54.11% from 57.89% the prior week, a small decrease.
The number of new 52-week NYSE new highs increased to 669 from 580 the prior week, a decent increase. Gold, gold miners, oil and TLT had positive returns.
BDH DASHBOARD –Remains on “3” BUY Signal With Two Signal Changes
Indicator #2 NASDAQ Composite Index and 100-dma. This indicator gave its last BUY signal on October 14, 2019. Refer to $comp chart below.
Indicator #5 NASDAQ Composite with MACD. This indicator had a SELL signal on Friday, February 21, 2020 on the slow MACD. (See first chart below).
Indicator #6 AAII Weekly Investor Sentiment Survey Bullish Percentage. The latest February 19, 2020 Bullish Percentage reading was 40.6% down from 41.3% the previous week.
Indicator #8 NASI Summation Index and MACD. This indicator issued a BUY signal on T Thursday, February 20, 2020. Refer to $NASI chart below.
BDH Decision Page – BDH Dashboard ETFs
On ETFscreen.com, the Decision Page indicated that 33 ETFs out of 44 have “pass” ratings which is down from 40 the prior showing internal market price deterioration.
You can easily check the top performers for the past 5-days and one month by going to the “Additional Fund Stats” tab on the right side of the BDH Decision Page, and arraying the Rtn-5d and Rtn-3mo column, respectively heading from high to low. If you check the performance over the past month by hitting the down carat you will note that the best performing ETFs in our 44 ETF universe last week were ARKK, ARKW, TLT, VNQ and XLU.
The link is as follows:
The BDH strategy is now ranked 14th by dark-liquidity. The dark-liquidity table shows the current portfolio and each ETF’s stop LIMIT.
Top 5 ETFs – 100% Invested – XLV, XLI, XHB, QQQ, ARKW
The portfolio is now 100% invested. It was down -0.85% for the week compared to -1.44% for the averages, so it performed better.
Game Plan Going Forward
Currently, the market had a bad two days at the end of the week, and closed near the lows. The trend is still up for now, but we will have to wait and see what develops this week. We remain 100% invested with our stop LIMITs in place.
Make sure that you are protecting your portfolio with appropriate stop LIMIT orders that mirror your risk tolerance. To repeat: If you are not sure about the definition of different stop orders, then check with Investopedia.com or other sources so that you use the type of order you prefer. Or contact your brokerage firm customer service to explain the differences to you.
Interim updates are sent to subscribers during the week, as needed. Any subscriber who has recently sent in a payment and has not received this regular blog today should email me at email@example.com so I can check my records and correct any oversight.
Remember that you are responsible for your investments and how you manage them. This website was developed for educational purposes only and is not responsible for any actions you take with your investments. If you decide to follow the BDH strategy, then you are 100% responsible for your investment outcome. Make sure to check the BDH indicators daily during times when the market is volatile like now. Just bookmark the charts above and look for any signal changes. I may not available during the week to provide interim Dashboard signal changes. It is important to be pro-active, so as not to miss any Dashboard signals. Decide on and place your stop LIMITS, if you use them, that meet your own risk profile.