As always remember no investment is made in a vacuum. It is important to know what the overall market is doing before you make a new investment.

We will look at 3 different momentum indicators that can be found on BarChart.

The Value Line Index - an index of 1700 stocks

Is the Index trending above or below it's 20, 50 & 100 Daily Moving Average? - ALL above - Bullish indicator

1.20 DMA ABOVE
2.50 DMA ABOVE
3.100 DMA ABOVE

Overall Market Momentum - Are stocks trading above or below their DMA's? - covers approximately 5840 stocks - The majority are trading above their DMAs - Bullish indicator

1.88% are trading ABOVE their 20 DMA
2.85% are trading ABOVE their 50 DMA
3.91% are trading ABOVE their 100 DMA

What ratio of stocks are hitting new highs than new lows? For all 3 periods there are more new Highs than new Lows - Bullish indicator

1.20 day new high/low 2415/196 = 13 to 1
2.65 day new high/low 1388/95 = 15 to 1
3.100 day new high/low 1344/660 = 2 to 1

This week all 3 indicators appear to be BULLISH - Code Green means it is probably safe to make new additions to your portfolio.

Comments: View Comments |  Monday July 27, 2009

Friday, July 17, 2009
BarChart Weekly Market Momentun W/E July 17,2009 - CODE GREEN
Remember you should always first evaluate which way the Stock Market is Trending before you add or delete from your portfolio. No stock investment should be made in a vacuum.

Value Line Index Daily Moving Averages - This index contain approximately 1700 stocks

1.ABOVE 20 DMA
2.ABOVE 50 DMA
3.ABOVE 100 DMA
Trading ABOVE all 3 Daily Moving Averages - BULLISH

BarChart Value Line Index w/DMA, Trend and 14 Day Turtle Chart

BarChart Market Momentum

What percentage of stocks are trading ABOVE or BELOW their Daily Moving Averages - Approximately 5800 stocks

1.81% ABOVE their 20 DMA
2.73% ABOVE their 50 DMA
3.88% ABOVE their 100 DMA
A sample of 5800 stocks shows that better than 50% of the stocks are ABOVE their DMA for all 3 periods - BULLISH

BarChart Market Momentum Table

BarChart New High/Low Ratios

1.20 DAY new H/L 1570/216 = 7.3 to 1
2.65 DAY new H/L 655/83 = 7.9 to 1
3.100 DAY new H/L 630/43 = 14.7 to 1
These are good numbers - New Highs far outnumber New Lows for all 3 periods - Very BULLISH

BarChart New H/L Table

It would appear we are in CODE GREEN and you should not be afraid to add to your portfolio holdings at this time

Comments: View Comments |  Friday July 17, 2009

Sunday, July 12, 2009

BarChart Market Trend Indicators W/E July 10,2009
All 3 of the BarChart Indicators that I use to evaluate short term Stock Market trending are NEGATIVE - A CODE YELLOW situation still exists. Until the Market changes direction let your stop losses trigger and do not make new positions

Value Line Index Daily Moving Averages (approx 1700 stocks) 2 of 3 DMAs trending lower

1.Trending BELOW its 20 DMA
2.Trending BELOW its 50 DMA
3.Trending ABOVE its 100 DMA

BarChart Market Momentum ( approx 5725 stocks) Daily Moving Averages 2 of 3 trading lower

1. 67% trading BELOW their 20 DMA
2. 58% trading BELOW their 50 DMA
3. 77% trading ABOVE their 100 DMA

BarChart New High/Low Ratios 2 of 3 ratios lower

1. 20 day H/L 355/1110
2. 65 day H/L 157/296
3. 100 day H/L 114/66

Comments: View Comments |  Sunday July 12, 2009

Saturday, July 4, 2009
Market Momentum W/E July 4, 2009 - CODE YELLOW
Code Yellow signifies that there is no trend and you must use extreme caution when buying new positions

www.barchart.com Indicators

Line Index -1700 stocks tracked - Slight Downward Trend

Trending BELOW its 20 day moving average
Trending BELOW its 50 day moving average
Trending ABOVE its 100 day moving average
Market Momentum - 5800 stocks tracked - NO trend

61% trading BELOW their 20 day moving average
58% trading ABOVE their 50 day moving average
84% trading ABOVE their 100 day moving average
New High/Low Rations - No Trend

20 day H/L 313/737 - negative
65 day H/L 208/132 - positive
100 day H/L 187/33 - positive
This week all 3 indicators do not show a strong trend. No one will fault you for holding off on entering into any new positions.

http://charts3.barchart.com/chart.asp?sym=$VLA&data=A&den=med&size=b&jav=adv&vol=Y&divd=Y&evnt=Y&grid=Y&sly=N&ch1=066&ov1=918&ch2=066&ov2=021&code=BSTK&org=stk&fix==

Comments: View Comments |  Saturday July 4, 2009