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First month of 2018 is in the bag, and the SPX finishes the month with a 5.66 % return, that's good. One thing for sure, this market is finally showing some weakness. Will the dip buyers save the day like they always did in 2017 ? we'll find out eventually. Let's take a look a closer look.
The SPY is closed at 281.90 and still well above its 200 moving average. For me , this is enough to stay in the market, despite all the "noise" out there. Following this simple rules has been very rewarding to me.
Another great indicator to gauge the stock market health, is to check the percentage of stocks in the S&P 100, that are still above their 200 moving average. This indicator was introduced by John Carlucci a few years ago, and has been helpful.
For January, 84.31 % of the stocks in the S&P 100 are still above their 200 moving average, up from
78 % last month.
Unemployment number is schedule to come out Friday. Analyst don't see any changes to the current rate of 4.10 %. I will post an update this weekend.
Finally, the US Sector. For the month of January, technology (XLK) was the sector of choice for the month. XLK returned 6.57 % return for January, and remains the best sector again for February.
This is my update for February. I hope you find these helpful, if you have any questions are simply want to chat, do hesitate to send me an email.
Happy Trading !