Comments on: Lowry Research’s Intermediate Trend Buy Signal

by: Senta

Thu, 13 Aug 2009 20:07:08 +0000

Too bad. MS SL is similar to Flash so I don’t see an issue. The SL graphs are awesome.

I don’t understand your comment about BATS - could you explain.

Anyway the point I want to make is that the cumulative volume index seems to be just coming back into normal range and still much below most of 2007 - so concern about the markets being “overbought” may be misplaced.

by: Babak

Thu, 13 Aug 2009 03:35:22 +0000

Senta, the site requires MS silverlight and since I won’t install it, I can’t see it. But according to the bit I could see, it says that the data is from BATS. If it is just from BATS, then it is incomplete of course.
Lowry’s BP and SP indices are proprietary - so they won’t talk about what the formula is.

by: Senta

Thu, 13 Aug 2009 02:16:37 +0000

I wanted to share the following chart with you and your readers.

This shows monthly cummulative volume index which to my eyes indicates the “buying power” vs. “selling power” (please let me know if I am wrong).

Anyway the chart illustrates the extreme events we have just come through. The index never fell below 0 in the 00-02 bear but went down deep into negative territory last winter, showing total panic among investors.

by: Wayne

Tue, 11 Aug 2009 13:13:47 +0000

Paul,

I really could only guess as to what made Desmond finally come around. One of the traits that a good trader usually has is flexibility. That is the ability to say you are wrong and get on the right side. I have found that most good traders are very humble and tend to keep their views to themselves to ensure that they can maintain this trait. For example I saw Jimmy Rogers on CNBC two months ago, who wouldn’t proclaim his fondness for the market, but when pressed on the matter, he admitted that he was long commodities and this was probably only second time in his career that he wasn’t short some equities. Reading between the lines, I surmised that he was a flaming bull.

Newsletter writers have the unfortunate task of proclaiming to the world what their position on the markets is on a constant basis. This causes them to often paint themselves into corners that make it difficult for them to maneuver out of. As the example of Rogers above, some of the best Newsletter writers that I know, require readers to astutely read between the lines to find out what they really believe. Watch what they are doing with their money, more than what they are saying.

by: PAUL MONTGOMERY

Tue, 11 Aug 2009 06:31:52 +0000

Babak [& Wayne]- brilliant thanks.

Can you see anything in Volume Charts [for example from SharpCharts] that would give us a clue as to what Lowry see ? I have looked, but nothing jumps out at me.

by: Babak

Mon, 10 Aug 2009 22:47:26 +0000

bazylejska, thank you for the compliments. The recent breadth data was courtesy of Wayne Whaley, another reader like yourself. Having such amazing readers is truly enriching.

by: Babak

Mon, 10 Aug 2009 22:44:52 +0000

jeremy, no one has a 100% track record but over all Lowry’sa track record is extremely impressive and it is based on quantified algorithms rather than discretionary methods which will die with any one person.

by: Babak

Mon, 10 Aug 2009 22:40:58 +0000

Guy, even the best are humbled by this Janus of a market.

by: Babak

Mon, 10 Aug 2009 22:39:40 +0000

Dave, I gave up months ago - just look at the explosion of volatility in breadth!

by: bazylejska

Mon, 10 Aug 2009 20:44:46 +0000

Babak,

Thank you ever so much for your articles. I am regular reader of your weekend sentiment data.

I was also very happy to see the article about the “10 day Advance Decline 2:1″ signal of Marty Zweig.

You present valuable bits of information, while many other market comentators are just trying to influence people.

Kind Regards

bazylejska