Sector Bullish Percents

Using the same concept as the NYSE Bullish Percent, we keep bullish percent charts of each of 41 industry groups and the Dow Jones Broad Sectors. The percent of stocks on buy signals in each sector is plotted on a grid from 0% to 100%. As with the NYSE bullish percent, the best buy signals come when a sector goes below 30% and then reverses up. The best sell signals come when a sector goes above 70% and then reverses below 70%. The same six signals (or risk levels) apply.

This is the second step of the game plan - determining what sectors have the offensive team on the field. The ideal situation for a sector is as follows:

  • Strong Relative Strength
  • Bullish Percent chart in X's
  • Bullish Percent chart about 50% or lower