Comments on: NYSE Breadth Is Strong: Why It Doesn’t Matter http://www.tradersnarrative.com/nyse-breadth-is-strong-why-it-doesnt-matter-2506.html Freshly squeezed market commentary & analysis Mon, 22 Mar 2010 14:50:33 +0000 http://wordpress.org/?v=2.0.2 by: Babak http://www.tradersnarrative.com/nyse-breadth-is-strong-why-it-doesnt-matter-2506.html#comment-57566 Sun, 22 Nov 2009 19:31:47 +0000 http://www.tradersnarrative.com/nyse-breadth-is-strong-why-it-doesnt-matter-2506.html#comment-57566 ms, not at all; there are many other indicators which were bullish. For example, just a few days after I wrote the above, I wrote about the <a href="http://www.tradersnarrative.com/coppock-guide-about-to-give-bullish-signal-2530.html">Coppock Curve giving an imminent bullish signal</a>. It is important to understand why an indicator works and what goes into it. Otherwise, you're just engaged in sophisticated voodoo. ms, not at all; there are many other indicators which were bullish. For example, just a few days after I wrote the above, I wrote about the Coppock Curve giving an imminent bullish signal. It is important to understand why an indicator works and what goes into it. Otherwise, you’re just engaged in sophisticated voodoo.

]]> by: ms http://www.tradersnarrative.com/nyse-breadth-is-strong-why-it-doesnt-matter-2506.html#comment-57532 Sun, 22 Nov 2009 03:50:41 +0000 http://www.tradersnarrative.com/nyse-breadth-is-strong-why-it-doesnt-matter-2506.html#comment-57532 You gotta be sorry you ignored this indicator. Even though it is "polluted", it does not need to be pure to be useful. It is all about context. You are bad mouthing a good indicator at your peril. You gotta be sorry you ignored this indicator. Even though it is “polluted”, it does not need to be pure to be useful. It is all about context. You are bad mouthing a good indicator at your peril.

]]> by: Dave http://www.tradersnarrative.com/nyse-breadth-is-strong-why-it-doesnt-matter-2506.html#comment-38660 Tue, 28 Apr 2009 17:15:42 +0000 http://www.tradersnarrative.com/nyse-breadth-is-strong-why-it-doesnt-matter-2506.html#comment-38660 Babak, One thing (among several) that made trading more difficult after last Oct/Nov was the difference between the S&#38;P500 &#38; the Nasdaq/NDX because of the prevalence of energy &#38; financial stks in the S&#38;P &#38; their largely absence in the Nasdaq. Energy &#38; financial stks were in a much worse bear mkt not only % wise, but also in persistence day-after-day which would affect the A-D. Otherwise, normally, i agree with you that the S&#38;P would be a much better measure for breadth. Terry Laundry partially addressed the matter that you &#38; i are discussing by saying something about % of stks advancing or declining, but i think that that only partially addresses the matter because of the # of ETF's, prefereds, etc still qualitatively skews the data IMO. However, you can see from his chart that a lot is riding on the quality of the ingoing A-D info. And you know the old saying about "GIGO" :) Regards, dave Babak,

One thing (among several) that made trading more difficult after last Oct/Nov was the difference between the S&P500 & the Nasdaq/NDX because of the prevalence of energy & financial stks in the S&P & their largely absence in the Nasdaq. Energy & financial stks were in a much worse bear mkt not only % wise, but also in persistence day-after-day which would affect the A-D. Otherwise, normally, i agree with you that the S&P would be a much better measure for breadth.

Terry Laundry partially addressed the matter that you & i are discussing by saying something about % of stks advancing or declining, but i think that that only partially addresses the matter because of the # of ETF’s, prefereds, etc still qualitatively skews the data IMO.

However, you can see from his chart that a lot is riding on the quality of the ingoing A-D info. And you know the old saying about “GIGO” :)

Regards,
dave

]]> by: Babak http://www.tradersnarrative.com/nyse-breadth-is-strong-why-it-doesnt-matter-2506.html#comment-38659 Tue, 28 Apr 2009 16:28:03 +0000 http://www.tradersnarrative.com/nyse-breadth-is-strong-why-it-doesnt-matter-2506.html#comment-38659 Dave, thanks, I'm somewhat familiar with Terry's "T-theory" but hadn't looked in on him in a while. I just checked out his most recent post where he uses the NYSE cumulative breadth chart. I'd leave a question but he's got comments turned off and I don't see any other way of reaching him. I'd be curious to know how he would respond. I wonder if anyone has kept breadth numbers for the S&P 500. Seems obvious but I never thought of it. Is that even possible? Dave, thanks, I’m somewhat familiar with Terry’s “T-theory” but hadn’t looked in on him in a while. I just checked out his most recent post where he uses the NYSE cumulative breadth chart. I’d leave a question but he’s got comments turned off and I don’t see any other way of reaching him. I’d be curious to know how he would respond.

I wonder if anyone has kept breadth numbers for the S&P 500. Seems obvious but I never thought of it. Is that even possible?

]]> by: Dave http://www.tradersnarrative.com/nyse-breadth-is-strong-why-it-doesnt-matter-2506.html#comment-38657 Tue, 28 Apr 2009 13:35:02 +0000 http://www.tradersnarrative.com/nyse-breadth-is-strong-why-it-doesnt-matter-2506.html#comment-38657 Babak, Thank you, Sir. You had me cross-eyed. LOL However, the main thrust of your post was VERY important. I assume that you're familiar with Terry Laundry &#38; his T-Theory. I wonder if he has considered your points because his Monday Update was based upon the A-D surpassing the January 09 highs. I had already read your inverse ETF article of 8 days ago. Although i am familiar with that supposition made previously by others, yours was the first that i actually took the time to read. Thank you again. Regards, dave Babak,

Thank you, Sir. You had me cross-eyed. LOL However, the main thrust of your post was VERY important. I assume that you’re familiar with Terry Laundry & his T-Theory. I wonder if he has considered your points because his Monday Update was based upon the A-D surpassing the January 09 highs.

I had already read your inverse ETF article of 8 days ago. Although i am familiar with that supposition made previously by others, yours was the first that i actually took the time to read. Thank you again.

Regards,
dave

]]> by: Babak http://www.tradersnarrative.com/nyse-breadth-is-strong-why-it-doesnt-matter-2506.html#comment-38656 Tue, 28 Apr 2009 13:13:52 +0000 http://www.tradersnarrative.com/nyse-breadth-is-strong-why-it-doesnt-matter-2506.html#comment-38656 Dave, just testing to see if you're paying attention. lol Fixed it. The inverse ETFs are the spawn of the Devil. They not only skew the AD but they're probably one of the main culprits for the crazy volatility we're seeing, especially at contra hour. Here's <a href="http://online.wsj.com/article/SB124000593149930309.html">the article</a> which I featured at <a href="http://news.tradersnarrative.com" rel="nofollow">news.tradersnarrative.com</a> 8 days ago. Dave, just testing to see if you’re paying attention. lol
Fixed it.

The inverse ETFs are the spawn of the Devil. They not only skew the AD but they’re probably one of the main culprits for the crazy volatility we’re seeing, especially at contra hour. Here’s the article which I featured at news.tradersnarrative.com 8 days ago.

]]> by: Dave http://www.tradersnarrative.com/nyse-breadth-is-strong-why-it-doesnt-matter-2506.html#comment-38649 Tue, 28 Apr 2009 06:00:10 +0000 http://www.tradersnarrative.com/nyse-breadth-is-strong-why-it-doesnt-matter-2506.html#comment-38649 "...the breadth numbers from the NYSE either have to be discarded." Either ? Either what ? Left hanging out here. Either/or ? The inverse ETF's further pollute the A/D data. “…the breadth numbers from the NYSE either have to be discarded.” Either ? Either what ? Left hanging out here. Either/or ?

The inverse ETF’s further pollute the A/D data.

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