Market Breadth
Thursday, November 29, 2007 at 10:35AM In response to the recent e-mails I have received about my concern about market breadth, I have written an article for you to read. It is a review of a couple breadth indicators; the A/D line and the McClellan oscillator. To read the article, click here. Show me some love :)
Another post is in the works with a bounty of trade ideas.
Stay tuned...
Reader Comments (21)
Thats a fantastic article. It will be printed and have its own place in my trading bible.
Thanks Jeff --- you rock!
Love shown!
Repost from last thread.
I would really appreciate any and all comments on how other OA's handle this type of situation. I'm trading a pretty small account so this seems to happen to me all the time.
Anyone in COH
I can't decide whether or not to cut it loose intra day. It's just at my max loss for a trade. I still haven't figured out if I should sell intra day or not in this situation. My experience has been mixed. What does everyone do? Any help is appreciated.
Great article! Already printed and in my JK binder. Yes, you have your own binder.... As Jodi said, it's the "trading bible". I know I need to work on my analysis of the "overall market" so this is coming at a perfect time. Thanks!
I don't think there are enough ads on that page, can you suggest to forbes that they imbed more annoying links?
Agreed with everyone here. Good article, will help in detecting when a rally is over.
Thanks Jeff!
Genius Jeff. Great article! Good call Jodi, definitely a print and save kind of article.
Gaamblor,
Forbes is Forbes my friend. They can do WETF they want.I try not to let that stuff get under my skin. Hope it was a good read nonetheless.
jym,
I'm not in COH but I have in my sights. Around this time of year retail could be a strong sector. It's a wait and see. On the techanical aspect I see a retracement (breaktrough) at the neckline intraday. I also see support at $34.90. The question is where do set your stops? What did you figure for R/R ? I myself set my stop 3% below support. Hope I have been some help.
Forbes is my neighbor.
optionfanatic,
Thanks for your help. My question really is, do I get out if my stop is hit intra day or wait for the end of the day. It seems that whenever I get out intra day the stock always recovers by days end, and if I wait for the end of the day it sinks, never to recover ;(
~~~~~~BRAVO~~~~~~
Great article.
Yes, the A/D line is a serious warning. However, note that during the late 1990's the A/D line topped out in mid-1998, about 1.5 years before the 2000-2002 bear market. So we are certainly nearing the end of this bull trend, but may still have significant upside ahead, but for diminishing numbers of stocks.
That is a good question? In this voltile Mkt. the market swings either way exspecially the last hour.I also tend to make most of my descions the last 15 min. of the trading day. Usually they are positions for the following day though. I follow my plan and if it hits my stop during the day I'm out! (mostly) I been known to hang on and sometimes to my regrets!
In the article you mentioned that there are 3 tenets to measuring breadth. Are there studies to look at new highs/new lows and up volume/down volume? Or what tools do you find easiest to use to measure these two as well?
Jeff, awesome article.
Does anyone know where on that page we can rate Jeff's arcticle? I looked everywhere but may have missed it combing through all the ads. Just want to give thanks to Jeff for all that he does.
Jeff, thanks for the additional tech analysis. You're not going to get all snooty now that you're a Forbes author, are you?
Jeff, thanks for the additional tech analysis. You're not going to get all snooty now that you're a Forbes author, are you?
Nice, I'm glad I've been listening to you increasing my cash
Jeff, You are an excellent captain in these troubled waters.
DD