Thanks. Yes I am thinking about them for sure. Hopefully have some time this weekend to make sure everything is on a tight leash. I have gotten complacent not keeping up with the market signals every week and just hunting through charts. An interesting stat that Dorsey mentions is 80% of a stocks price movement is dictated my the market and sector. Just 20% is the stock itself. I don't know if its a stat or his experience he is referring to but it highlights the importance of keeping up with the forest through the trees approach and not getting tunnel vision on individual charts.
(2013-09-14, 02:20 PM)gbarbs Wrote: Thanks. Yes I am thinking about them for sure. Hopefully have some time this weekend to make sure everything is on a tight leash. I have gotten complacent not keeping up with the market signals every week and just hunting through charts. An interesting stat that Dorsey mentions is 80% of a stocks price movement is dictated my the market and sector. Just 20% is the stock itself. I don't know if its a stat or his experience he is referring to but it highlights the importance of keeping up with the forest through the trees approach and not getting tunnel vision on individual charts.
Yep the 70 to 80% stat is something I've seen quoted many times, and you can check it yourself on individual charts by measuring the correlation. Stockcharts for example has an indicator that does that called correlation, and I personally look at stocks using a 20 day MA correlation and a 200 day MA correlation to get an understanding of how the market average moves will affect them.
What you said is the reason for this market breadth thread, as with around three quarters of the individual stocks movements dictated by they major averages moves, it's very important to try and understand what's happening beneath the surface of the market averages and the Stages that they are in. As Weinstein's method is a top down approach.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Attached is the updated Advance Decline Breadth Charts, including the cumulative AD line, momentum index, cumulative AD volume line, 10 Day AD oscillator and the McClellan Oscillator and Summation Index.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Another up week on the sector breadth this week, with all sectors moving higher and five sectors making it back above their moving averages once more.
Below is the data table for the Percent of Stocks Above 150 Day Moving Average in each sector which I've ordered by relative strength, with the highest to the lowest percentage in each sector. Also attached is the visual diagram of the 9 sectors and the NYSE Percentage of Stocks above their 150 day Moving Averages line chart.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
