Kirk's Charts

[Kirk]

Using Bullish Percentage Indexes for trading

Full Definition http://stockcharts.com/education/Resources/Glossary/bullishPercent.html

Bullish Percentage Indexes are useful for intermediate- to long-term trading. Each such index indicates the percentage of stocks in a given set of stocks (exchange or index) that have Buy signals on their "Point and Figure" charts.

This is a contrarian strategy. When too many stocks have PnF buy such signals, most of those traders who would want to buy would have bought already, leading to a lack of new buyers to push the prices further up, leading to a decline. The opposite is also true - too few PnF charts with Buy signals means that most people who would sell have probably sold already, meaning that the prices are likely to go up as the selling subsides and new buyers emerge.


DJIA vs NYSE BPI






NASDAQ Composite vs. NASDAQ BPI




QQQ vs. NASDAQ 100 BPI



S&P500 vs. S&P500 Bullish Percent Index



Full List of Bullish Percent Charts:
NYSE ($BPNYA)
Nasdaq ($BPCOMPQ)
Nasdaq 100 ($BPNDX)
Dow Industrials ($BPINDU)
S & P 500 ($BPSPX)
S & P 100 ($BPOEX)
Toronto Stock Exchange ($BPTSE)
S&P Consumer Discretionary Sector ($BPDISC)
S&P Energy Sector ($BPENER)
S&P Financial Sector ($BPFINA)
S&P Healthcare Sector ($BPHEAL)
S&P Industrial Sector ($BPINDY)
S&P Information Technology Sector ($BPINFO)
S&P Materials Sector ($BPMATE)
S&P Consumer Staples Sector ($BPSTAP)
S&P Telecom Services Sector ($BPTELE)
S&P Utilities Sector ($BPUTIL)
Dow Jones Transportation Sector ($BPTRAN)

Udpated 2/21/03: Added Nasdaq Summation Index Chart

Kirk's Market Thoughts: http://www.suite101.com/discussion.cfm/investing/55973
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