What is market breadth telling us | stockbee

7/29/2009

What is market breadth telling us

We are clearly at a extreme bullish breadth levels. The T2108 is at 85.72. Such high levels lead to corrections. Many such corrections can be sudden and vicious. But a overbought market can remain overbought for long. In a long running bull market such overbought levels correct slowly and then the move resumes. At this stage we do not know how this move will play out. But you should be in a pullback/correction anticipation mood. Protecting profits made so far should be one of the prime objective.

  • A series of 300 plus negative 4% days will be negative for market.
  • The #of stocks up 25% in a quarter going below 200 would be bearish
  • So far we have not seen these things.
  • So breadth is showing you a good bull market currently.
  • Which is getting reflected in our trading.

Market Monitor
Market monitor is market breadth
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Current Readings
Market in a rally mode.
Earnings season currently on

Type IndicatorValueComments
Daily# of stocks up >4% on high volume202
Daily# of stocks down>4% on high volume 158
Primary# of stocks up >25% in a quarter2214
Primary# of stocks down>25% in a quarter314Approaching 200 indicates extreme bullishness
Secondary # of stocks up> 50% in a month13But this one is not in extreme zone.
Secondary # of stocks down>50% in a month3
Secondary # of stocks up>25% in a month193
Secondary # of stocks down>25% in a month19
Primary
fast
# of stocks up>13% in 34 days2717
Primary
fast
# of stocks down>13% in 34 days526
MMA+% of stocks in confirmed uptrend66
MMA-% of stocks in confirmed downtrend 13
10 day
cumulative
breadth
ratio

4.42

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