Market Monitor
After Friday's down action, the Asian markets and European markets were down coming in to today morning. In the pre market indexes were down and many were worried about follow through selling, but the indexes spent the day recovering and ended in positive territory. Volume was light.
The leading stocks recovered from Friday's losses. Housing stocks were up ahead of the earnings season start for the group. Gold stocks dominated the downside action.
The McClellan Summation Index needs to turn up, in last few days it has turned down.
The leading stocks recovered from Friday's losses. Housing stocks were up ahead of the earnings season start for the group. Gold stocks dominated the downside action.
The McClellan Summation Index needs to turn up, in last few days it has turned down.
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5 comments:
What does that index tell us? that there can be downside here?
So we shrugged off the Friday correction and it is up and up now?
Or still good chance of more downside?
It tells you possibility of bounce failure till breadth catches up.
I been looking at this chart, but if i followed it , i had not buy any stocks from april till august, i would have missed a lot of returns, it may be a narrow leadership, but they were oportunities from IBD and vectorvest in the period...Am i missing something?
You have to understand the concept behind it. What tells you is narrower set of stocks were going up and more stocks going down. Breadth indicators always work that way. So you might be trading the narrower set of stock going up, which is what momentum traders do. The indicator does not, or for that matter any indicator, does not tell you what and how to trade.
i reached the same conclusion too, because of the stocks list i compile and make a wathclist and thats what i trade , its the stocks the are outperforming the market and i rotate the list and when i do rotate, it eliminates the weak ones and pick the new stocks or market leadership.
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