Weekly Point & Figure Bullish % and Sector Watch

The NYSE Bullish Percentage is on offense at 70.06 and the OTC Bullish Percentage is on offense at 54.02. (Last week: 68.34% & 52.78%)

Welcome to the Red Zone. As of Thursday's close of business, the NYSE Bullish Percent has crossed the high risk area known as the Red Zone. This area, demarcated by the crossing of the 70% line is where, at least historically, stock prices have shown us that it pays to be especially vigilant. This is not a Sell signal. It could be used a way to take money off the table and to watch for individual names to reverse back down.

The following sectors are on Point & Figure buy signals: Insurance, Real Estate & Electric Utilities (very risky), Leisure, Aerospace & Metals, Gas Utilities, Banks, Savings, Food, Financials, Machinery, Health, Housing, Business Products, Forest Products, Retail, Telephone, Restaurants, Gaming, Auto, Textiles, Electronics, Internet, Building, Transports, Medical, Computers, Software, Biomedical, Precious Metals, Oil Services, Oil, Waste, Semiconductors, Drugs (green = Favored)

Reversed up this week: none

Reversed Down this week: Protection & Safety Equipment

Leading Names in leading Sectors:

Metals: BVN, PD, EZM, PCU, MT, NSS, SYNL, NUE, CMC, AKS, RIO
Retail: GCO, CMRG, JWN, SSI, PLCE, BONT, SKS, KSS, AZO

note from me: A point and figure chart (explained) is a disciplined approach to selection and managing risks. It was created by Charles Dow and is based on supply and demand (economics). A reading of 30% is low and a reading of 80% is very high. The higher the percentage the greater the risk. This is important to watch while in the market and/or waiting to put new money to work. These Bullish Percentage indicators relate to risk levels and are not “buy” or “sell” indicators on the NYSE or the OTC. The bullish percentages should indicate to an investor when to be aggressive and when to be defensive. As the reading goes over 70%, sector selection becomes a more critical part of your strategy. These indicators can be found at www.dorseywright.com.

STOCKS BREAKING ABOVE AND BELOW THEIR 50 DAY & 200 DAY M.A.

NOTABLE NEW HIGHS

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