Trader’s Narrative

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 […]

Here’s yet another market indicator which is suggesting caution. I’ve been noticing these pop up for a while now. And although we have now broken above the problematic resistance level of 1400, there are several reasons to reign in any rampant bullishness in the short term.
Among them, sentiment as well as the High/Low Indicator […]

Here’s yet another metric showing that the market may be approaching overbought conditions:

For those unfamiliar with this indicator, it is the percentage of stocks within the S&P 500 Index (SPX) which are trading above their simple 50 day moving average. So for example, if we had 100 trading above and 400 trading below, that would […]

As a technical analyst, I normally look at price action exclusively but volume is undeniably, another important element of the market. I’m a bit reluctant to delve into the concept of volume because a lot of what is already out there is bunk.
In any case, here is an interesting chart of the recent NYSE total […]