Tag Archives: advance decline line

Market Breadth Divergence Update

Posted on November 27, 2013 by

On Sunday November 17th, I posted an article that identified headwinds for the equity market.  I explained that five independent leading indicators all pointed to near-term trouble for equities: a forming divergence in market breadth, an elevated CBOE Skew Index, … Continue reading →

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Posted in Economic Indicators, Market Breadth, Market Commentary, Market Sentiment, Market Timing, Trade Analysis | Tagged , , , , , , , , , , , , , , | Leave a comment

Five Headwinds for Equities

Posted on November 17, 2013 by

I typically release new posts on Thursdays, but market conditions justified an accelerated schedule this week. Five independent leading indicators all point to near-term trouble for equities: a forming divergence in market breadth, an elevated CBOE Skew Index, a very … Continue reading →

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Posted in Economic Indicators, Fundamental Analysis, In-Depth Article, Market Breadth, Market Commentary, Market Sentiment, Market Timing, Technical Analysis | Tagged , , , , , , , , , , , , , , | 2 Comments

The Deadly Double Divergence

Posted on October 24, 2013 by

Would you be interested in an indicator that has signaled ten market tops since 1966 without a single false signal?  I read about such an indicator in an article titled “Double Divergences in the Advance-Decline Line,” which appeared in the … Continue reading →

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Posted in In-Depth Article, Market Breadth, Market Commentary, Market Timing, Technical Analysis | Tagged , , , , , , , , , , | 2 Comments

Take the First Step Toward an Investment Process

Posted on June 15, 2012 by

Most investors do not use an investment process.  Instead, they ask their friends for stock tips, watch CNBC, read a few newsletters (or blogs), and hope for the best.  There is no consistent rationale behind their decision-making process, very little … Continue reading →

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Posted in Fundamental Analysis, In-Depth Article, Market Breadth, Market Commentary, Market Timing, Relative Strength, Risk Management, Seasonal Tools, Security Selection, Stock Screens, SWAMI Charts, Technical Analysis, Zacks | Tagged , , , , , , , , , , | 5 Comments

Use Relative Strength to Identify Market Trends

Posted on June 8, 2012 by

Relative strength rotational strategies have a proven track record of success, but the potential uses of relative strength extend much further than security selection.  One of my favorite techniques is to use the relative strength of two different indices, futures … Continue reading →

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Posted in Economic Indicators, Futures, In-Depth Article, Market Breadth, Market Commentary, Market Timing, Relative Strength, Technical Analysis | Tagged , , , , , , , , | 3 Comments

A More Efficient Relative Strength Indicator

Posted on May 4, 2012 by

Relative strength investing has a proven track record of success.  Most traders have heard the term, but know very little about developing or trading strategies based on relative strength.  The concept is simple: buy the strongest securities and sell the … Continue reading →

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Posted in Economic Indicators, In-Depth Article, Market Breadth, Market Timing, Options, Relative Strength, Stocks & ETFs, SWAMI Charts, Technical Analysis | Tagged , , , , , , , , , , , , | 8 Comments

The Secret Weapon of Technical Analysis

Posted on March 28, 2012 by

The vast majority of technical indicators perform a computation on the price or volume of an individual security.  While these indicators can provide valuable insights, most traders ignore the most effective type of technical indicators. 

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Posted in Economic Indicators, In-Depth Article, Market Timing, Risk Management, Strategy Development, Technical Analysis | Tagged , , , , , , , , , | 24 Comments