Trader’s Narrative

Since the start of the spring rally in March and into July, Lowry Research continued to recommend to its customers that the market would inevitably retest the lows and even see new ones. In June, Paul Desmond declared the impressive rally so far to be merely a bear market reaction and not a bull market. […]

Every once in a while, the market has such strong momentum that the 10 day NYSE Advance Decline goes above 2:1. The historical data below is from Wayne, a regular reader and experienced CTA. As you can see, the latest one was just last week on July 27th 2009:

Wayne continues:
“I have advance/decline data going […]

Today’s market strength isn’t surprising as we looked at different breadth measures that suggested that in the short term, the market was approaching oversold.
But today’s strength notwithstanding, looking out further along the time horizon, we are probably going to see lower prices. According to the latest report from Lowry Research, their proprietary Buying Power Index, […]

Yesterday’s Fast Money had an interview with Paul Desmond, president of Lowry Research:

He mentions the 90% downside volume we saw accompany Monday’s decline as well as the anemic volume behind the higher prices since April 2009 as reasons he thinks that this is not a real bull market.
Desmond thinks that we are heading lower and […]

The volatility of the stock market has been astonishing. In a short time we’ve witnessed a cluster of 4 days where the market volume was 90% or higher. This along with the multitude of Lowry 90-90 days has been unprecedented in recent history.
Here’s a very long term chart of the advance decline numbers for […]