http://stockcharts.com/freecharts/gallery.html?$NAA50R shows that 47% of Nasdaq stocks are above their 50 day moving average – a significant change from last week. The 50 day moving average of that indicator is also moving down. The point and figure chart indicates a bearish objective of 32. With less than have the Nasdaq stocks in an up trend it is probably not a good time to invest.
Investors Business Daily calls the market “Up trend under pressure.” IBD also points out that the Nasdaq has had 6 distribution days (lower market days with increased volume) in the last few weeks. Another distribution day and IBD will call the market “Market in correction.”
The sum of the deviations (952,994,765) is not up for the last two weeks – not a time to invest.
The DJ Wilshire 5000 index is above its 50 day moving average and the average is increasing – time to invest. Both do not say buy.
One interesting trend is that all three Real Estate funds I follow have had increasing deviations over the last 3 weeks. 3 week increasing deviations is one of my buy criteria. 9 funds out of the 137 I follow also meet that criterion with JapanSmallerCompanies being the #1 fund.
My current investments:
SConstruction&Housing has a price of $52.72, a sell price of $51.24, a relative rank of 17, and is a hold.
SBrokerage&InvestmentMgnt has a price of $55.09, a sell price of $55.57, and I will sell it Monday.
SAirTransportation has a price of $45.65, a sell price of $45.08, a relative rank of 09, and is a hold.
SmallCapDiscovery has a price of $26.96, a sell price of $26.48, a relative rank of 11, and is a hold.
SmallCapValue has a price of $18.29, a sell price $17.91, a relative rank of 10, and is a hold.
JapanSmallerCompanies has a price of $11.88, a sell price $11.29, a relative rank of 01, and is a hold.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – Sell SBrokerage&InvestmentMgnt