One beautifully simple thing about the markets is that it is not necessary to use complex procedures to gain an edge.
As evidence, see below.
Bottom Signal: Percentage of Stocks Above 20 and 50 Day Averages At Historic Lows
The graph below has red circles on the days when those posts were made.
Nothing fancy is being applied except for an old fashioned breadth indicator.
So are you bullish now ? Seems for me it about to come down, no ? Thanks Woody.
Not bullish, but not bearish either. Neutral. I’m concerned about the S&P getting hung beneath the 50 day, but it could just be consolidating. I suspect that good news on the fecal cliff could launch us above the 50 day.
Wood, last time we retested and marginally broke the low with a positive divergence on the indicator. If that happens, it could be a nice low-risk buying opportunity for a Santa Claus rally. Thanks. This is a nice perspective. Tom
Great post Woodshedder. Where do you get your data from for this indicator? I want to do my own personal backtesting
Hi Enn, I use AmiBroker to parse the data and make the indicators. I get the data itself from Norgate Premium Data. I highly recommend Norgate’s products.
” not necessary to use complex procedures to gain an edge.” — ver true, entry no matter like exit tho
so can agree that only thing that better than patting yourself on the back is making $$$$$ right 😉
tmt, no doubt, the exit is where the money is made!