(This post was last modified: 2020-04-12, 07:13 PM by pcabc.)
RE: Stan Weinstein's Stage Analysis and Market Breadth - Technical Analysis
(2020-04-12, 05:24 PM)RUTrading Wrote: Pcabc, thanks for sharing the 2008 charts, looks very interesting, love the work you doing on this. This is what Stan was talking about taking different indicators and putting them together to create the Weight of the Evidence.
I understand when you say making money from it is harder. It is always easier to look at these indicators once the events have accured and then know when to have exited or entered.
It will be interesting to see when it tells you to get back in the market. Eventually we going to have to follow these beautifully gauges blinding to make the money we hope to make. The key probably is narrow the focus on what works for us and then to trust it.
My overall scores are starting to look better right now. But if you look at previous events bounces in a bear market have increasing breadth. An interesting example is the dotcom bubble:
1. During the stage 4 the advance / decline line was rising.
2. Weinstein's momentum was rising for much of 2000 - 2001 and was above zero for 2001 and the first half of 2002.
3. The percentage of stocks above the 50% EMA was above 50% for much of the time (bullish).
4. Same can be said of the percentage of stocks above the 200 day EMA.
5. My overall score system is showing 'buy' despite being in a stage 4 in the market.
6. Lower highs in the index.
So unfortunately there is no magic bullet.
(Note, I have no new highs or new lows data for this period.)