Trader’s Narrative

Back to everyone’s favorite game: is this the real deal of a new bull market? or is Mr. Market about to get another visit from gravity?
Tto try to answer this lingering question, I again turned to the lessons offered by the young bull market of March 2003. Here is a chart of the percentage of […]

A recent mention of cumulative TICK on Trader Feed blog caught my attention and I looked at this indicator today. Now I know, Dr. Steenbarger’s chart of cumulative TICK is using the NYSE TICK data and it is very short term in contrast to my analysis.
But he does briefly mention that “…the Cumulative NYSE TICK […]

Breadth is an important element of technical analysis that usually gets ignored for pure price action. But every once in a while, it is helpful to pop the hood and take a look at what is driving the price action in the indexes.
A simple way to measure breadth is to look at new 52 […]

Last Friday we looked at the unprecedented earnings collapse that has fueled this bear market. The chart below is the flip side, showing the impact on the S&P 500’s valuation through the Price/Earnings ratio:

Source: Chart of the Day
While the P/E ratio is a familiar rule of thumb that helps us to calculate the relative value […]

One of the signs of the tech bubble was how Information Technology as a sector ballooned from less than 6% (in 1989) to 29.18% (in 1999) in relation to the S&P 500 capitalization. Turning that idea on its head, let’s take a look at the financial sector during the past few years as a ratio […]