A Red, White and Blue BAMBI Update
BAMBI is modestly bullish for this past week with a 16 to 14 bullish reading. While that may not seem like much, it is the first positive reading since 4/10. Further, 16 of the DJIA stocks beat the Index, which I believe is bullish. As an aside, both the S&P and DJIA get a "6-2" reading.
Two stocks gave bullish weekly MACD signals (MRK and GE). In both cases, I think its about time, but shows the problem lately of waiting for the bullish signal. By the time the stock gives a bullish signal it is close to or at the top of its long term trading channel. One stock gave a bearish signal (JNJ).
The bullish indicator concept is now 9 for 9. Since late Jan, the week following any bullish signal has been a positive week for the Index. Since we have two more bullish signals, we get to see if we can run the streak to ten in a row.
Last week I suggested that one might want to focus on the "industrial cyclical" stocks. I still feel that this is the focus group. In the DJIA the "IC" stocks are: AA, BA, CAT, DD, MMM, and UK. I think at least one of them is positioned to provide a quick 6-7% return. Then there is the Magic Kingdom. It represents a great battle of the bulls and bears and is splitting 3:1 July 10.
BWDIK and all other disclaimers!
TB |
