Market continues to have breadth thrust | stockbee

1/20/2012

Market continues to have breadth thrust



Market continues to have breadth thrust and is quickly approaching extreme positive breadth territory.

Secondary indicator of stocks up 50% in a month is above 20 . That indicates extremely strong buying environment. Typically such extreme breadth results in correction in next one to 2 weeks.



Extreme breadth by itself is not negative. But if it is followed by high volume selling then it is a worry area.

As of now the setups look good and cyclical and beaten down stocks continue to attract buyers in hoards.

Stocks breaking out to new high have had mixed response. Many have not moved much beyond b/o day.

Out of all the b/o and dollar b/o one of the buy ideas is CNW (Con Way Inc.


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