RE: Market Breadth Update
Hi Mongoose,
My research has led me to believe that the Aug breakdown has a high probability of being the first down leg of a new bear market. The rally that peaked in Nov is ominous because the Dec Dow peak was lower than Nov. If the markets sell off today then we'll have all of the major averages (DOW, SPX) back below their 150 day ma's which rolled over several months ago and have been downsloping ever since. Personally, I'm short SPX via going long SPXU, and I will remain short while the DOW and SPX stay below their 150 day ma's. I'd only recommend going long if the averages rise back above their 150 day ma's (and preferably the 150 day ma's start to rise again). That one rule has saved me a lot of £ over the years.
BTK looks vulnerable, so I might short GILD today.