The Dow hit a new all-time high last week, but the stock ratings indicated an increase in the number of SELL stocks. This apparent conflict in the data represents a confusing message, but perhaps reflects the ongoing uncertainty of investors. Something has to give. Either the third quarter numbers will drive stocks higher still or perhaps we will see a pull back towards the end of the year. Based on the trends you should not be surprised to see a fairly significant correction.

In a week that saw the Dow hitting new highs, we also had 5,313 SELL stocks, up by 13 from 5,300 last Monday. This was a third week in the row with an increase in SELL stocks.

There were 1,177 BUY rated stocks, down 7 from a week ago. Not a significant weekly drop, but a continuous decline for a third consecutive week.

Stocks with the HOLD recommendation decreased by 7, from 3,018 last Monday to 3,011 today.

There are 9,501 stocks rated by Weiss and below is their recommendation distribution.

A majority of the stocks fall under the D rating (SELL), representing 51.9 percent of the entire Weiss Ratings stock universe. BUY stocks represent 12.4 percent, and HOLD stocks 31.7 percent.

On Friday, Weiss upgraded 545 stocks and downgraded 560.

Do not underestimate the power of words. As we have seen during the recent election, the power of words is substantial. Indications of Trump’s policy direction before his inauguration will certainly have an effect on the markets, and we have seen how infrastructure investment costs have already lead to changes in the bond market.

Be sure to check back with us often for the latest ratings and data, as our stock ratings are updated daily.