Friday, March 4th
* We proceed to come across buying involvement inwards stocks, peculiarly amid smaller in addition to midcap names, only it's the absence of selling pressure level that's peculiarly notable. We bring been getting few highly negative NYSE TICK readings in addition to that is creating relatively small-scale pullbacks. Meanwhile, breadth continues to expand, equally the nautical chart of stocks making fresh three-month highs versus lows illustrates:
* I reveal both equity in addition to index put/call ratios bring come upwardly down, if nosotros await across all issues in addition to all exchanges. This past times itself doesn't exercise a sell signal, only it's an early on sign of the form of bullishness that typically leads to a marketplace peak. Volume in addition to volatility also proceed to come upwardly down, amongst VIX closing below 17. Note inwards the nautical chart inwards a higher house how nosotros took out lows from end year, solely to straight off render into the year's range. I would non live on surprised to come across an eventual testify of the highs of that range, given the considerable momentum thrust off the recent lows.
Thursday, March 3rd
* I've mentioned how The previous post provided a nautical chart for a useful short-term overbought/oversold measure. We're coming off overbought levels amongst weakness on Fri in addition to inwards overnight trade. Note below that my intermediate-term mensurate of forcefulness has also been stretched to the upside. In a potent market, those overbought weather condition are worked off amongst small-scale cost harm (i.e., they right equally much inwards fourth dimension equally inwards price); inwards a weak market, bounces from selloffs are small-scale in addition to facilitate cost damage. It is how the electrical flow wheel unfolds that lays the groundwork for the coming one.
* Breadth has been potent lately. Even later Friday's drop, nosotros bring over 70% of SPX stocks closing inwards a higher house their 3 in addition to 5-day moving averages in addition to over 80% inwards a higher house their 10 in addition to 20-day averages. (Data from Index Indicators). At the Feb lows, nosotros saw meaningful breadth divergence, amongst fewer shares making novel lows than inwards January. Since that time, we've had a meaningful breadth thrust to the upside. That has larn stretched in addition to we're seeing corrective activeness at present, only my base of operations representative is that the electrical flow wheel volition bottom at a higher depression relative to the Feb bottom in addition to ultimately Pb to farther cost gains.
* My latest operate has been refining intraday wheel measures to assistance shorter-term trading only also to assistance entry in addition to expire execution for longer-term positions. These wheel measures are denominated inwards resultant bars, non time-based bars. Below is a 50-bar charge per unit of measurement of modify mensurate that I bring flora useful.
* We proceed to come across buying involvement inwards stocks, peculiarly amid smaller in addition to midcap names, only it's the absence of selling pressure level that's peculiarly notable. We bring been getting few highly negative NYSE TICK readings in addition to that is creating relatively small-scale pullbacks. Meanwhile, breadth continues to expand, equally the nautical chart of stocks making fresh three-month highs versus lows illustrates:
Thursday, March 3rd
* I've mentioned how The previous post provided a nautical chart for a useful short-term overbought/oversold measure. We're coming off overbought levels amongst weakness on Fri in addition to inwards overnight trade. Note below that my intermediate-term mensurate of forcefulness has also been stretched to the upside. In a potent market, those overbought weather condition are worked off amongst small-scale cost harm (i.e., they right equally much inwards fourth dimension equally inwards price); inwards a weak market, bounces from selloffs are small-scale in addition to facilitate cost damage. It is how the electrical flow wheel unfolds that lays the groundwork for the coming one.
* My latest operate has been refining intraday wheel measures to assistance shorter-term trading only also to assistance entry in addition to expire execution for longer-term positions. These wheel measures are denominated inwards resultant bars, non time-based bars. Below is a 50-bar charge per unit of measurement of modify mensurate that I bring flora useful.
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