Breadth holding up well | stockbee

10/01/2013

Breadth holding up well


The large cap indexes have been under pressure for some days but the Nasdaq and small caps are doing well. This is reflected in the breadth.
The T2108 is Worden indicator that tells you % of stocks above 40 day moving average.  As you can see below the indicator rose sharply after reaching around 23. At a current reading of 59 it shows that 59% of the stocks are trading above their 40 day moving average. That is a healthy breadth picture.




T 2108


$BPNYA is another breadth indicator. It tells you % of stocks that are in confirmed up trend using the pint and figure charting method. Currently 73% of the stocks are in confirmed uptrend. The indicator in recent days has dipped below its 5 day moving average indicating pullbacks or reversals on some of the stock. 


BPNYA


The Stockbee Market Monitor is my own breadth based market timing model. Currently the model is in transition mode indicating excessive bullish breadth which often leads to pullbacks in next 2 to 3 weeks. 
Stockbee Market Monitor


The interesting thing to note is number of stocks up 50% in a month. Currently 22 stocks are up 50% plus in a month. This number seldom goes above 20. Readings above 20 indicate some select stocks are doing very well.

One of the best performing stock has been FB. FB is currently my largest position. It was an earnings breakout and was a buy on earnings day. Since then it is up approximately 50% plus.




Overall still lot of bullish setups in the market as breadth continues to hold. 

3 comments:

Unknown said...

Thanks for sharing and teaching, you have made a lot of difference in the trading community educating people, your market monitor is a great tool, and very accurate, its timing works perfectly.

Marina

Unknown said...

Thanks for sharing and teaching, you have made a lot of difference in the trading community educating people, your market monitor is a great tool, and very accurate, its timing works perfectly.

Marina

Pradeep Bonde said...

Thanks