Stock Lists and charts have been updated for Jan 27, 2017.

Stock lists and charts have been updated for Jan 27, 2017.

Growth has been doing better than Value, since Dec 2, 2016. This can be seen in the Growth vs value chart. Summation Index is above 1000 since Jan 9, 2017. Read the explanation on the “Summation Index” page to understand the significance of Summation Index being above 1000.

David Ryan has written a very insightful blog (titles “Rotation”) on what is currently happening in the Stocks market. His blog is just below. Read it!

Rotation

January 24, 2017  Rotation

The market continues to rotate from group to group.  One day the financials are doing well as interest rates climb and the next they fall as interest rates also fall.  The FANG stocks, (Facebook, Amazon, Netflix and Google) were dramatically underperforming from the election in November until the end of the year and now they are midst of a strong move in January with Google and Amazon breaking into new highs.  It is tough to stay ahead of the rotation.  

The Summation Index can't get enough momentum to really get this market to break out and never gets enough negative days in a row to start a market correction.  So it is currently in a neutral mode.  As in most markets to get outperformance you have to be in the right groups and the rights stocks.  Check out the Sector ETF Analysis on this website to see what is working now.  Semiconductors, Financials, Industrials, Value and Technology are all leading at this time.  For individual names look to model list of stocks for the best names for possible buys.

      

We may soon get a buying opportunity

The number of stocks above their 50 day moving average has gone above 70% and the number of stocks above 200 day moving average is above 60%. These values indicate that the market, on a short term basis, is overbought. 

So at this point it is not a good idea to add more money to stocks. Wait for these values to come down before adding new money to stocks.

These indicators do not give an exact day when the market becomes overbought and will turn around. However these indicators do tell us to wait and watch till we get an opportunity to add new money to stocks. All this is short term, so any action should happen in days or weeks.

Long term the market is still in an uptrend.