We had another run of consistently bad economic data this week spiced with a smattering of stocks that reduced forward guidance. ISM hit record lows, a recession was officially declared, auto sales were beyond disappointment and, to cap it all off, the non-farm payrolls numbers were released on Friday and reported a stunning loss of 533,000 jobs in the previous month. Yet stocks rallied on Friday and managed to limit the week's losses to just a few percent.
Against the backdrop of a market that refuses to stay down, we see the number of BUY signals hanging in at a fairly substantial level. Here is the breakdown for this week:
- based on daily data, we have 63 BUY signals and only 5 SELL signals
- based on weekly data, we have 12 BUY signals and 1 SELL signal