We had another run of consistently bad economic data this week combined with a number of bellwether stocks in a wide range of industries that reduced forward guidance. Jobless claims continued at recession levels, bonds continued to receive a flight to quality trade driving yields to record lows and retail sales were bad but not as bad as feared. Tribune Company declared bankruptcy and Bernie Madoff admitted $50 billion had evaporated as his investment company turned out to be a Ponzi scheme. These shocks to the system couldn't derail stocks to any great extent and rather that plunging, stocks engaged in a little back and forth action and finished the week with modest gains.
Against the backdrop of a market that won't go down, we see the number of new BUY signals hanging in at a fairly substantial level. Here is the breakdown for this week:
- based on daily data, we have 56 BUY signals and only 4 SELL signals
- based on weekly data, we have 8 BUY signals and 2 SELL signals