There are thirteen companies in the S&P 100 that meet these price position criteria:
1. Positive 200-day best fit trend line slope (linear regression)
2. Price greater than 200-day average
3. Price above mid-point of the 3-month daily price range
Proctor & Gamble (NYSE:PG)
Sara Lee (SLE)
Campbell Soup (NYSE:CPB)
Performing the same test on other S&P indexes, we see these numbers of companies passing the filter:
S&P 500: 114
S&P 400: 93
S&P 600: 131
If we drop the requirement that the price be above the mid-point of the 3-month daily average, and require only that the 200-day best fit trend line have a positive slope, and that the price be above the 200-day average, we get these test survivors:
S&P 500: 167
S&P 400: 156
S&P 600: 195
Overall these tests show that substantially less than 1/2 of companies are in an uptrend condition.
Holdings Disclosure: As of June 3, 2010, we do not own any securities mentioned in this article in any managed accounts.
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