A very lopsided breadth for last 10 days. | stockbee


A very lopsided breadth for last 10 days.

  • There is a high probability of correction in next 2 to 5 days.
  • The correction may be just a minor dip in overall trend .
  • That has been the trend so far since March.
  • However if you are not positioned right and have lot of overextended stocks you can suffer sharp draw-downs.
  • We have had a very lopsided breadth for last 10 days.
  • The cumulative breadth ratio is at 6.11. Which means in last 10 days for every 1 stock down 4% there were 6 stocks up 4% plus.
  • New sectors continue to breakout.
  • Stocks which are currently overextended are vulnerable.
  • But we continue to find stock breaking out from consolidation.
  • Market is also shifting its focus to growth stocks.
  • IBD 100/200 are now having breakouts and follow through.

Market Monitor
Market monitor is market breadth
based market timing tool

Current Readings
Cautiously bullish

Type IndicatorValueComments

Daily# of stocks up >4% on high volume55577 stocks with 100 million plus dollar volume.(M$V)
Big stocks are breaking out.

Daily# of stocks down>4% on high volume 48
9 stocks with 100 million plus M$V
Primary# of stocks up >25% in a quarter2496
Primary# of stocks down>25% in a quarter131This is in caution mode.
This is the lowest level I have seen in MM since
I have been tracking this data for last 8 to 9 years.
This year everything is abnormal.
We will get a correction soon.
But other secondary indicators are not at extremes.
So move might have more legs.

Secondary # of stocks up> 50% in a month33This is moving towards extreme territory.
In this market these readings have gone up
above 100 couple of times
Secondary # of stocks down>50% in a month1
Secondary # of stocks up>25% in a month336Moving towards extreme.
Highest was 875 in August
Secondary # of stocks down>25% in a month6
# of stocks up>13% in 34 days2412
# of stocks down>13% in 34 days357
MMA+% of stocks in confirmed uptrend73Bearish
MMA-% of stocks in confirmed downtrend 11
10 day
#of stocks up> 4% in last 10 days/
#of stocks down>4% in last 10 days
6.11We had lot of buying in last 10 days.
So you see cumulative ratio has turned above 6.
Typically the buying persists for sometime after this hppens.
So the correction might be just a pullback.


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Pradeep Bonde said...