Trader’s Narrative

The financial stocks are not doing too well right now. I’m just telling you in case you’ve been hiding under a rock or have been floating in sensory deprivation tank for the last whee bit.
It seems everyone is looking at the poor financials and noting how weak they are relative to the market. The shibboleth […]

Here’s an interesting chart comparing two slices of the US stock market:

In early April, around the time the stock market recovered from the March bottom, suddenly the Mid Caps (right axis) and the Large Caps (left axis) parted ways.
This is rather strange because they walked hand in hand for a very long time. I’m not […]

Last week I suggested that market breadth doesn’t matter, until it does. By which I meant that inspecting every twitch of the cumulative breadth measure for the market isn’t all that useful.
Most of the time, this indicator is brought up because there is a “negative divergence” which then is used to argue that the market […]

If you know anything about Wall St. you won’t be surprised to learn that the cyclical nature of IPO trends can be studied to gain insight into the stock market.
After all, companies don’t go public as a gesture of charity. They do so because they think that they will gain something by exchanging their shares […]

Market breadth is what goes on inside the stock market. Most people pay attention to price, like the Dow or S&P 500 index. Market breadth looks at the number of stocks that are advancing or declining within an index or an exchange. It is a great way to measure the “health” of the market. After […]