Comments on: Long Term Cumulative Breadth Charts http://www.tradersnarrative.com/long-term-cumulative-breadth-charts-1699.html Freshly squeezed market commentary & analysis Sun, 08 Nov 2009 02:21:06 +0000 http://wordpress.org/?v=2.0.2 by: Market Breadth Doesn’t Matter, Until It Does http://www.tradersnarrative.com/long-term-cumulative-breadth-charts-1699.html#comment-33439 Wed, 04 Jun 2008 05:43:31 +0000 http://www.tradersnarrative.com/long-term-cumulative-breadth-charts-1699.html#comment-33439 [...] I’ll show the long term charts of cumulative breadth for both Nasdaq and NYSE in an upcoming post. It really is eye opening. bear market, cumulative breadth, double bottom, market breadth, Nasdaq, nasdaq breadth, nasdaq composite index, negative divergence, NYSE, NYSE breadth [...] […] I’ll show the long term charts of cumulative breadth for both Nasdaq and NYSE in an upcoming post. It really is eye opening. bear market, cumulative breadth, double bottom, market breadth, Nasdaq, nasdaq breadth, nasdaq composite index, negative divergence, NYSE, NYSE breadth […]

]]> by: Invest for Financial Freedom http://www.tradersnarrative.com/long-term-cumulative-breadth-charts-1699.html#comment-33183 Mon, 19 May 2008 08:08:36 +0000 http://www.tradersnarrative.com/long-term-cumulative-breadth-charts-1699.html#comment-33183 <strong>Carnival of Equity Trading #6- May 18, 2008...</strong> Carnival of Equity Trading #6- May 18, 2008 trackbacks... Carnival of Equity Trading #6- May 18, 2008…

Carnival of Equity Trading #6- May 18, 2008 trackbacks…

]]> by: just doug http://www.tradersnarrative.com/long-term-cumulative-breadth-charts-1699.html#comment-33165 Sat, 17 May 2008 01:45:44 +0000 http://www.tradersnarrative.com/long-term-cumulative-breadth-charts-1699.html#comment-33165 Using any single indicator is always asking for trouble, especially if you are using the same ones as everyone else and using them the same way. That said the cumulative breadth line looks a little different if you compile it for common stock only (no etf's etc) and adjust for changes in the number of issues. How you measure divergence also makes a difference. Eyeballs tend to spot 9 out of every 2 divergences or vice versa depending on the biases of the viewer. Personally rather than look at the number of issues above a certain average I look at the average % they are above it. If 80% of stocks are above a 50d MA but on average they are only 1% above it that's a very different situation than if they are 5% above it. I also like % that are overbought or oversold based on 1 SD bollinger bands, which more or less combines those 2 measures. Using any single indicator is always asking for trouble, especially if you are using the same ones as everyone else and using them the same way. That said the cumulative breadth line looks a little different if you compile it for common stock only (no etf’s etc) and adjust for changes in the number of issues.

How you measure divergence also makes a difference. Eyeballs tend to spot 9 out of every 2 divergences or vice versa depending on the biases of the viewer.

Personally rather than look at the number of issues above a certain average I look at the average % they are above it. If 80% of stocks are above a 50d MA but on average they are only 1% above it that’s a very different situation than if they are 5% above it.

I also like % that are overbought or oversold based on 1 SD bollinger bands, which more or less combines those 2 measures.

]]> by: pit http://www.tradersnarrative.com/long-term-cumulative-breadth-charts-1699.html#comment-33163 Sat, 17 May 2008 00:24:36 +0000 http://www.tradersnarrative.com/long-term-cumulative-breadth-charts-1699.html#comment-33163 I speak for the breath of Nasdaq. I think it is the way it is, going down and nothing else because a carnage has happened the last few or more years in the small caps world. The recovery of 2003 for a few months had to do exactly with the rally these small caps experienced at this time. Nasdaq contains some thousands of stocks mostly small caps and some few big caps that make the Nasdaq indexes. So the breath actually contains some usefull information and this to my opinion is when the small caps do well and when not.reagards I speak for the breath of Nasdaq. I think it is the way it is, going down and nothing else
because a carnage has happened the last few or more years in the small caps world.
The recovery of 2003 for a few months had to do exactly with the rally these small caps
experienced at this time. Nasdaq contains some thousands of stocks mostly small caps
and some few big caps that make the Nasdaq indexes. So the breath actually contains some usefull information and this to my opinion is when the small caps do well and when not.reagards

]]> by: Bisco http://www.tradersnarrative.com/long-term-cumulative-breadth-charts-1699.html#comment-33161 Fri, 16 May 2008 13:38:24 +0000 http://www.tradersnarrative.com/long-term-cumulative-breadth-charts-1699.html#comment-33161 Hi Babak, You are still doing incredible work here, keep it up! I had a question about how you’d allocate your capital with the breadth situation the way it is now. I'm talking about % of S&#38;P above 50-day MA looking high but % of S&#38;P above 200-day MA looking good still. If I look back to 2003 I see that coming off a big bear market the % of S&#38;P above 50-day MA managed to stay overbought for a very long time. Currently we are coming off only a 20% decline, so I would not expect the indicator to stay overbought for the same amount of time. Personally, I am not using this indicator as an opportunity to short just because it looks a little overbought. Do you use these opportunities to trim your long exposure or do you try to time small corrections in what looks like a new uptrend by going short? Hi Babak,

You are still doing incredible work here, keep it up! I had a question about how you’d allocate your capital with the breadth situation the way it is now. I’m talking about % of S&P above 50-day MA looking high but % of S&P above 200-day MA looking good still. If I look back to 2003 I see that coming off a big bear market the % of S&P above 50-day MA managed to stay overbought for a very long time. Currently we are coming off only a 20% decline, so I would not expect the indicator to stay overbought for the same amount of time. Personally, I am not using this indicator as an opportunity to short just because it looks a little overbought. Do you use these opportunities to trim your long exposure or do you try to time small corrections in what looks like a new uptrend by going short?

]]> by: Henry http://www.tradersnarrative.com/long-term-cumulative-breadth-charts-1699.html#comment-33140 Thu, 15 May 2008 03:58:04 +0000 http://www.tradersnarrative.com/long-term-cumulative-breadth-charts-1699.html#comment-33140 You got it exactly right Babak. The same can be said about total volume on NYSE. People are saying how this rally is built on weak foundations because of low volume. Well, that's non sense, because a look at the charts show no reliable buy/sell signals from volume! Henry You got it exactly right Babak. The same can be said about total volume on NYSE. People are saying how this rally is built on weak foundations because of low volume. Well, that’s non sense, because a look at the charts show no reliable buy/sell signals from volume!

Henry

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