This week the market didn't give us much to work with. Volume was low, markets were closed for a day and a half for Christmas and investors didn't seem to want to move stocks too far one way or the other. With the exception of the Russell 2000, all the other major averages failed to move above their 50-day moving averages and indeed fell below their 20-day moving averages. Still, the declines were quite modest despite another pile of bad economic news: a jump in initial jobless claims, a plunge in home sales and confirmation the consumer went AWOL during this holiday shopping season.
Against the backdrop of a market that won't go down too far but won't go up either, we see the number of new BUY signals hanging in at a decent level. Here is the breakdown for this week:
- based on daily data, we have 34 BUY signals and 13 SELL signals
- based on weekly data, we have 15 BUY signals and 1 SELL signal