Odd-Lot Short Sales on the rise

the QCHA is the "average percentage movement for all [NYSE] exchange listed stocks each day on an unweighted basis." This is from Barron's.
<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=168696"></img>

im not sure which divergence has greater weight: the lower highs or the higher high that immediately followed the big bounce.
 

Attachments

Chas,

that ad/line is interesting. It would appear that a break of 1.3 ish could lead us lower.

Weekend chatter was still pretty bullish. Friday's reversal was curious, but after four down days that was the least we could expect.

Good trading this week.
 
I was all set to give up my 9250 thesis until I saw that QCHA divergence -- the higher high made after the big bounce. I imagine it looks better on a weekly chart.

The idea that the market might go higher still has been nipping at my heels for weeks and I'm trying to keep a proper distance from it.

I don't discount the lower highs on the QCHA...perhaps lower then higher? I'm sort of preparing for anything.

Good trading to you as well.
 
Chas,

Is there any way to compare the QCHA action with the July Lows and August top against the Oct Low and Nov top?

The action of individual stocks seems to have diverged in a positive way from the indexes. However, due to the lack of positive news, and the quickness of the run I am leaning toward a buyable pull-back.
 
I have to think about that. It's an interesting observation. Remember, too, that the QCHA represents NYSE issues while the price chart is the Spooz. I'm not sure if that affects your point.
 
Chas,

You're right, probably a more accurate comparison would be the QCHA vs the NYSE Composite. What I have noticed on some indicators which is curious, is that although we did not take out the August highs on the indexes (sans naz), more individual stocks made new highs than in August. Even on Friday there were more highs than lows.

Normally, I would consider this rather significant. However, at this time this is the only real positive I can find. The AD line is terrible, and Gold and Bonds still pushing new highs is a little worrisome. I would actually like to see a good exhaustion run on mining stocks and treasuries. Lot of pumping of Gold this weekend in the press, so maybe we go to $750 per oz.

Good Trading
 
You must log in or register to reply here.
Back
Top