Things look good, maybe too good. Â When I look at Vanguard's Total Market ETF (VTI) I like the fact that the fund has returned to trading above all its daily moving averages:
At the same time I'm happy that Barchart's Market Performance Indicator showed that the majority of stocks are trading above all their daily moving averages:
Market Performance Indicator
Barchart Market Momentum Index ($BCMM) [-1.59%] is an exclusive index used as an indicator of change in overall markets. It reflects the movement of stocks who fit the following criteria: must have current SEC filings, must have traded for a minimum of 6-months, and must be trading above $2.
Market Average
Â
The percentage of stocks in $BCMM above their individual Moving Average per period.
| Â | 5-Day MA | 20-Day MA | 50-Day MA | 100-Day MA | 150-Day MA | 200-Day MA |
|---|---|---|---|---|---|---|
| Today | 81.84% | 50.16% | 56.63% | 54.80% | 55.81% | 57.41% |
| Yesterday | 82.88% | 46.98% | 55.09% | 54.27% | 54.65% | 56.95% |
| Last Week | 63.85% | 27.90% | 44.59% | 46.18% | 47.41% | 51.90% |
| Last Month | 27.35% | 71.58% | 63.47% | 58.49% | 58.83% | 62.84% |
Please don't let the good news give you a false sense of security. Â Remember that the Market looked great on 7/16 then collapsed overnight from $278.21 to $251.00 without warning and really without good reason.
Please go back and relisten to the webinar John Rowland and I gave just a few weeks ago : Â Portfolio Risk Management Tools of the Trade
Have your stop losses in place and make sure you have your portfolio diversified. Â If that's not enough consider buying some puts on the positions that are bothering you. Â Mitigate your risk and don't be too cocky!
On the date of publication, Jim Van Meerten had a position in: VTI . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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