I know you all look here for stocks to buy but I encourage you to keep your stop losses in place and not buy in until you see a recovery. I am again using the Vanguard Total Market ETF (VTI) as my proxy for the Market. Notice that we have had 3 days down and only one day up. How can you loose holding cash?
Let the chart speak for itself:
If that chart isn't enough to show that a recovery trend has not yet materialized look at the Barchart Stock Market Momentum -
Market Performance Indicator
Barchart Market Momentum Index ($BCMM) [+4.36%] 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
The percentage of stocks in $BCMM above their individual Moving Average per period.
| 5-Day MA | 20-Day MA | 50-Day MA | 100-Day MA | 150-Day MA | 200-Day MA | |
|---|---|---|---|---|---|---|
| Today | 13.92% | 20.66% | 39.36% | 43.28% | 45.30% | 50.09% |
| Yesterday | 5.96% | 16.52% | 35.44% | 39.70% | 41.77% | 47.76% |
| Last Week | 57.74% | 65.26% | 67.50% | 62.63% | 62.51% | 65.96% |
| Last Month | 45.88% | 47.56% | 40.84% | 42.83% | 45.08% | 51.80% |
Please wait until at least the 5, 20 and 50 Day Moving Averages are above 50%. You can get whip-sawed iif you jump in too early
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
