Seeking Alpha

Jim Van Meerten's  Instablog

Jim Van Meerten
Send Message
Jim Van Meerten is an advisor to Marketocracy Capital Management and writes on financial subjects here and on Barchart Portfolio Blogs and Seeking Alpha. He earned a BS in Accounting and Business Administration from Berry College; a Juris Doctorate from the Woodrow Wilson School of Law; and... More
My company:
Marketocracy Capital Management
My blog:
Barchart Portfolio Blogs
  • Market has no clear direction 0 comments
    Oct 3, 2009 12:14 PM
    This week, in fact the last 2 weeks have not been that great. The market as measured by the Value Line Index, an index of 1700 stocks was down 2 weeks in a row about 5.8%. Not the 10% retracement some predicted but still cause for some concern. None of the stocks I hold in the Wall Street Survivor portfolio have gone down to the 50 Day Moving Average but some are approaching my sell signal. More on that later.

    Let's look at the way I view that market:
    Vaule Line Index -- 1700 stock followed by Value Line:
    1. BarChart still has a BUY signal of 8% as an overall average but the 5 short term indicators have a 40% sell. Overall there are 5 BUYs, 4 Holds and 4 Sells. Only 5 of the 13 indicators are BUY and since the short term indicators average SELL, I'll be culling at the 50 DMA and not replacing till the market gives a better sense of direction.
    2. The VLA is below its 20 DMA but still above its 50 & 100 DMA

    BarChart Market Momentum - Of the 6000 stocks BarChart follows how many are trading above their Daily Moving Averages for various periods?
    1. 20 DMA -- 65% are trading below
    2. 50 DMA -- 63% are trading above
    3. 100 DMA -- 81% are trading above

    The ratio of new highs to new lows for various periods -- 1 is neutral, above 1.01 bullish below .99 bearish.

    1. 20 day new/high ratio -- 319/1916 = .17 (bearish)
    2. 65 day new/high ratio -- 223/220 = 1.01 (neutral)
    3. 100 day new/high ratio -- 203/135 = 1.50 (bullish)

    My recommendation: The market does not have a clear trend, now is the time to review each of your holdings individually and cull the ones you aren't feeling strong about. Don't commit to new positions until you get some clarity out of the market but have a list of stocks you'd like to buy on this dip so you can jump in when a bottom is reached.

    Back to the Wall Street Survivor portfolios for our Top Stock Bloggers. With just 2 days trading for the month the S&P 500 is down 3.01%, Anthony Mirhaydan our winner was up 5.76% and I brought up the rear down 7.87%. Maybe next week the market will be kinder to me.

     

    Jim Van Meerten is an investor and shares his investing opinions on Financial Tides, MSN Top Stock Blogs and Seeking Alpha.

    Disclosure: I do not hold positions in stock mentioned in my blogs but I hold them in the Wall Street Survivor portfolio for accountability of my recommendations.

     
Back To Jim Van Meerten's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • $CORI - 100% Barchart technical buy signals - 15 new highs and up 48.67% in the last month - Relative Strength Index 78.77%
    2 days ago
  • $OCR - 100% Barchart technical buy signal - 9 new highs and up 18.32% in the last month - Relative Strength Index 82.24
    3 days ago
  • $WAT - 100% Barchart technical buy signals - 8 new highs and u 8.66% in the last month - Relative Strength Index 77.38%
    4 days ago
More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.