Posts filed under “Technical Analysis”
The # of Net 52 Week Highs (52 week highs minus lows) is
barely positive, but as shown below, the strong bull market of 2003 produced
readings much stronger than present. This is both reflective of the lack of
market direction and the waning participation in the longer-term bull move.
NASDAQ 100 Net 52 Week Highs/ 30 Day Highs
click for larger chart
At the same time, the NASDAQ 100 index is forming higher
lows. This implies the markets can rally somewhat higher — but the A/D line divergence indicates
fewer stocks are participating in the up-trend.
Quote of the Day:
"Those who realize their folly are
not true fools."
Category: Technical Analysis
This weeks Barron’s has an interesting chart from Sy Harding. If you are unfamiliar with Harding’s work, have a look at his prescient 1999 book, “Riding the Bear: How to Prosper in the Coming Bear Market.” (Spend the $1.49 on used copy — its well worth it). Harding suggests that: “UNLESS I’M LOOKING AT the…Read More
The previous chart reveals the long standing secular moves of the markets; What’s an investor to do during one of the long periods of weakness? One answer is to learn to be more nimble, and trade the cyclical markets. > Dow Jones Industrial Average, 1966 – 1982 click for larger chart data for chart courtesy…Read More