My stream went from breadth is terrible to breath is beautiful in the span of a week.
The low was 45 days ago and the Wilshire 5k is up 35% so a 50-d moving average will show a lot of stocks are above it. That’s how math works
The low was 45 days ago and the Wilshire 5k is up 35% so a 50-d moving average will show a lot of stocks are above it. That’s how math works
Careful with ‘strong breadth’.
Similar breath (~90% above 50-d) preceded two long sideways periods in 2004-05.
85% of was above its 50-d at the Oct 2007 top. That’s objectively strong breadth
Similar breath (~90% above 50-d) preceded two long sideways periods in 2004-05.
85% of was above its 50-d at the Oct 2007 top. That’s objectively strong breadth
(Cont). Likewise, strong breadth preceded three different harsh corrections in the past 10 years
Likewise with
Because stock markets have a very high propensity to go higher over time, ‘bad breadth’ is a good sign of a washout low. Like bearish sentiment. Good breath not quite the same
Why? If investors are buying a wide variety of stocks, they’re being less selective and careful: i.e., they're risk-seeking and bullish, which is when trouble sometimes arrives. Tricky
For 2 months, pundits have been hating the weak breadth in the market: equal-weight and geometric mean indices lagging, only tech and health leading, etc. Now, +35% later, breath signals the all-clear...
There are a lot more companies above their 50-d than their 200-d. Why? Because there was a 35% rally over the last 46 days. This wide ‘spread’ has preceded some lows (green lines) and some massive drawdowns (red)
Summation is 1-2 up days away from reaching +500 after being negative March-April. Since 2003, higher highs in have been ahead. It never reached +500 during the 2007-9 bear market
https://t.co/jkpt7GJ2pU
Breadth momentum: will be +966 today and will cross +1000 tomorrow. Notes on chart
Breadth: 98% down volume day. Woof. Here are other distribution days in the past 2-1/2 yrs.
Distribution days tend to cluster and the low on very often undercut, at least intraday. It’s a momentum thing (as usual)
Spot the one company that gained
Not just a distribution day, a 63:1 down day. Here are the only days that match in the past 40 years 1/2
Cont 2/2
