SmarTrend Statistics for Dec 21
Despite last week's modestly lower move on the major indices, the percentage of stocks in an Uptrend ticked higher to 64.8%, up from 62.6% last week. The return for the average Uptrend did, however, slide lower to 29.3%, down from 32.1% a week ago. The average return for a stock in a Downtrend moved sharply lower to -8.0%, a level not seen since early this year. This adds weight to the premise that investors are not bidding up underperforming stocks on dips into year end and may become increasingly more selective in 2010 as all stocks no longer move in tandem. As equity correlations move down from 1, stock and industry selection will become a top priority so be sure to carefully monitor your Watchlists for changes in trend for the stocks you are following.
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