[isatrader]

$CHWY is another a really good modern example of the Stan Weinstein's Four Stages. Continuing to decline sharply in Stage 4 currently, giving back almost the entire 2020 Stage 2 advance.

   

#StanWeinstein #stageanalysis #stocks #trading #investing

[isatrader]

Totals for the week:

+149 double top stock breakouts
-1314 double bottom stock breakdowns

-1165 net breakouts - breakdowns

Status: Difficult Environment

   


Cumulative Point & Figure Breakouts - Breakdowns Distance Above / Below its 20 day MA

   


Cumulative Point & Figure Breakouts - Breakdowns MA Momentum Oscillators

               

[isatrader]

US Total % Stocks Above their 50 Day, 150 Day & 200 Day Moving Averages Combined

23.65% (-15.19% 1wk)

Status: Very Difficult Environment (Lower Zone)

Strategy: Very defensive on the long side / Cash / Shorting / Focus on Risk

   


US Total % Stocks Above their 50 Day, 150 Day & 200 Day Moving Averages Combined Point and Figure Chart

Column of Os (Defense) and a double bottom breakdown into the lower zone.

P&F Status: Bear Confirmed

   


20 and 50 day Oscillator

These show the distance that the combined chart is from the 20 day MA and 50 day MA on the chart. Above the zero is positive environment and below is a difficult / negative environment 

       


NYSE Total % Stocks Above their 50 Day, 150 Day & 200 Day Moving Averages Combined

32.32% (-20.01% 1wk)

       


Nasdaq Total % Stocks Above their 50 Day, 150 Day & 200 Day Moving Averages Combined

14.98% (-10.38% 1wk)

       

[isatrader]

The purpose of the RS tables is to track the short, medium and long term RS changes of the individual groups to find the new leadership earlier than the crowd.

100 is strongest, 0 is weakest

You can find out which stocks are in each industry group by going to https://stockcharts.com/freecharts/indus....html#&t=T and clicking on the name of the group

       


1 week, 2 week, 4 week and 12 week RS changes

               


Gold Mining, Mining and Non Durable Household Products groups were only positive areas of the market this week.

       

On the downside Steel and Semiconductors led the declines. With huge devastation in numerous stocks.

       

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Going through the 104 weekly group charts, less than 10% are in Stage 2, and a few of those would be considered borderline.

[isatrader]

% above +1x ATR(21 day) = 2.33%
% below -1x ATR(21 day) = 67.13%

The cumulative line made a double top. But individually the % above +1x ATR is at the extreme with only 2.33% in an ST uptrend & % below -1x ATR also at its highs.

           

[isatrader]

Effective Volume update from http://effectivevolume.com/content.php?156-etf-review on the $SPY, $QQQ, $IWM

Larger player selling accelerated on Thursday across the board. All three indexes remain in Stage 4 on the cumulative EV charts (right).

   

[isatrader]

Percentage of stocks above their 20 day EMA in Nasdaq Composite, NYSE, S&P 500 and Small Caps

With all areas of the market strongly in the lower zone. The key for this short term breadth measure is to watch for moves back through the 30% level which I use as the signal for this.

               

[isatrader]

I hope that you've now come to appreciate the value of why I do the market breath in so much detail each week, using the Weight of Evidence approach from Stan Weinstein's method.

As we've now been on Difficult Environment status and Defensive strategy since the 19th Nov. https://www.stageanalysis.net/forum/Thre...1#pid18811

Knowing the trading environment (positive or difficult) and when to be defensive or aggressive is a big part of the battle imo. As each market type & Stage requires a different approach. i.e. why be fully invested during a difficult env, if you can't make progress 25% invested.

So this is why I do the market breadth each week in detail. As it is a critical part of the Stan Weinstein's method, and imo potentially the most important part of the method.