NASDAQ COMPOSITE 8089.54 +0.40 % Week
This will be a shortened blog, as is the case on occasion.
The market was little changed for the week with the NASDAQ rising for the third consecutive week. Last week, the NASDAQ was up 0.40%, the S&P 500 was up 0.54%, but the DJIA fell 0.17%. All the major averages are above their 20-, 50-, 100- and 200-dmas which means we are in a short-term uptrend.
During the week Indicator #5 and #8, both had BUY signal on October 14 and 15, respectively, resulting in a maximum “4”’ BDH Dashboard BUY signal.
For the YTD:
NASDAQ 21.92%; DJIA 14.76%: S&P 500 19.12%; and BDH Strategy 3.67%
An interim update was emailed on October 15 indicating that three ETFs should be purchased on the open on October 16, resulting in a 100% invested position. There were:
Profit or Loss since purchase:
This will be reflected in the Top5 ETF spreadsheet next week. XHB, home builders, is leading the performance. Note that XHB and IYT were the two best performers of all of our ETF universe in the past week. Go to www.dark-liquidity.com to see their tabulation of our results, and go to www.etfscreen.com/buydonthold for the latest data on all 44 ETFs and the “additional fund stats” that provides column data over various periods that can be sorted high to low or vice versa.
Dashboard Indicator Review – Two Changes – Now at “4” BUY
Indicator #2 NASDAQ Composite Index and 100-dma. This indicator gave a BUY signal on Monday October 14, reversing its October 7 SELL signal.
Indicator #5 NASDAQ Composite with MACD. This indicator had a SELL signal on October 11, and a new BUY signal on October 14 as the MACD had a positive crossover (see top chart right side at the bottom)
Indicator #6 AAII Weekly Investor Sentiment Survey Bullish Percentage. The latest October 16, 2019 Bullish Percentage reading was 33.6% up from 20.3% the previous week. This was one of the biggest weekly percentage increases in years, no doubt resulting from the big up day on Tuesday. Since the indicator went from under 25% to above 25% this week, it issued a BUY signal. However, this is a confirming BUY signal as this indicator has been on a BUY signal since 12/07/2018.
Indicator #8 NASI Summation Index and MACD. This indicator had a BUY signal on October 15 (see the chart below).
With a fully invested position, we will wait to see the market’s direction going forward. I am recommending the following stop limit orders for the new positions as follows:
XHB $ 42.99
You should determine your own orders based on your risk tolerance. Make sure your existing stop LIMITs are in place in case the situation deteriorates. We are still in a volatile market that is trying to reach new highs.
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 firstname.lastname@example.org 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.