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Using advance / decline data is not dead. This is an example of using the
McClellan Oscillator for NASDAQ and the NASDAQ index as a general market
timing tool.
Note the bullish divergences between MCO and price at the end of 2000, April
2001, July 2001 and the bearish divergences in Feb 2001 and Jun 2001. Think
you could have made some money if you had used some timing like that? :)
Notes:
This is some of the best performance of the MCO divergences I have seen in
some years.
MCO divergences do not apply to individual stocks.
Divergences of any kind do not always occur and do not always work out.
Divergences can be some of the most powerful items in our TA toolbox.
NYSE and its MCO is similar but not as good looking as this plot.
Cheers
Trader
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