Despite the fact that most US equity markets rallied in the order of 1-2% on Monday (May 21.), I must say that after performing the customary proprietary trend analytics modelling to review the S&P500 stocks I was literally stunned to see the internal technical deterioration on what should normally be regarded as a good day for stocks in general!.
Now unless you subscribe to our service, obviously you won’t get the benefit of knowing exactly when a new trend is starting or an old trend is ending – but what I can tell you is that whilst the S&P500 was up 20 points or 1.60% on Monday, our trending analytics model actually triggered 14 new intermediate bearish trend signals – indicating that these stocks started new downtrends with a duration of at least several months out to a potential year or more. How many turned bullish on Monday? – that’s easy to count – ZERO!
We’ve been telling you for some time that the complexion of this market is changing, but on Monday it changed a little more – now we are starting to see some of the big names and heavier weighted names starting to turn bearish – such as Johnson and Johnson (JNJ), Chevron (CVX) and Boeing (BA) to name but a few.
Once again we have decided that given the high number of instruments in our various portfolios, in particular the Beta 3.0+ portfolio that we will trim a few names and take from gains as follows;
So as we said, the technical deterioration continues and below is a list of stocks that moved to intermediate term bearish trend signals on Monday (as determined by our proprietary trend signal analytics model).
Of the stocks listed below, those that are bold and accompanied by an astericks (*) have been added as new additions to the various beta portfolios. Please log-in to the open portfolio positions click here where you can see how each of the highlighted new bearish trend signals in these stocks have been leveraged in the various beta portfolios.
*Please note that the information provided here is for information purposes only and should not be construed in anyway as advice of any sort. Please familiarize yourself our important disclaimers here before continuing.
Images: Flickr (licence attribution)