Long Only, Momentum, Portfolio Strategy
Contributor Since 2009
Jim Van Meerten 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 attended post-baccalaureate and graduate courses in Business Administration, Quantitative Math, and Education at Florida Atlantic University, Georgia State University and University of North Carolina at Charlotte. In the past he has been an accountant, attorney, adjunct professor in Business Law, Accounting and Internal Auditing, financial advisor, supervisory principal, and compliance officer. He also passed the Georgia CPA Exam, the Certified Internal Auditor Exam, and the FINRA Series 7, 24 and 9/10 exams.He is presently also a contributor on MSN Top Stocks Blog, Motley Fool and is a member of the M100 on Marketocracy, an elete honor chosen by the editors of Marketocracy as being in the top 100 portfolio managers of over 100,000 portfoiios they review. He would enjoy hearing your comments at JimVanMeerten@gmail.com.
Today I sorted the NASDAQ 100 Index to find the 5 with the best Barchart technical indicators and charts and did not like what I saw. I am giving a big signal of caution to all technical and momentum investors. This is a declining market and I do not buy into declining markets.
Look at this hourly chart of the Value Line Index over the last 28 days and you can see the hourly declines:
On the close Friday 55.06% of all the stocks traded below their 20 day moving averages and there were 2856 declines to 977 advances - That's a 3 to 1 decline in the market. Sit on the side line and be ready to jump in when the market reverses.
These are not buy recommendations but are just given for information. They are the 5 with the highest Barchart technical indicators but NONE has a score of 100%. The list includes Fastenal (FAST), Virgin Media (VMED), Akamai Technologies (AKAM), Expeditor's International of Washington (EXPD), andOracle (ORCL):
Virgin Media (VMED)
Akamai Technologies (AKAM)
Expeditors International of Washington (EXPD)
Be patient and keep your powder dry!