Market Trends

[Babak]

I thought it might be good to have a thread where we can keep track of current market trends to analyse and discuss what is happening and what may happen.

I'll start off stressing the divergence in the AD (another thread) for the Nasdaq and also point this out:



I hadn't looked at the PC ratio recently and was surprised to find it at such an overbought reading - 0.529 Its actually heading up now. Does it denote a short term correction coming our way?

 

[gkishot]

It's very possible. The depth of the correction is unclear though. Very much depends on fundamentals.

 

[MacroEvent]

great point---------as i have stated before, the put/call ratio gives very good indications of pending changes or the strength of a running trend.

 

[BloodTrader]

Interesting point about A/D line from Hussman:

http://www.hussmanfunds.com/wmc/wmc050801.htm

m

 

[easyrider]

That was interesing. Thanks for the link.

 

[Babak]

Yeah, I brought it up on the AD thread:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=53092&perpage=6&pagenumber=2

NASDAQ AD line has been declining steadily, as the composite has been rising. That doesn't dovetail with his thesis (see above thread post 1)

It is rather obvious that the mid/small cap is where its at right now.

Technically the threads should be one (can the mod please merge them? thks)

 

[Babak]

http://www.decisionpoint.com/ChartSpotliteFiles/050729_200ema.html

I agree, I think the late Jul 2005 was a correction top and we've headed down for a bit.