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Here is a shot of the NASDAQ and its five day CCO TRIN (CODI on the chart).
It is once again back in that Sell Alert level with a divergent RSI from
price. It did stay in the Sell Alert area all the way up the trend from
last October, but when the CCO Trin 5 turned up in the final week of '99 the
NASDAQ took a sharp dump. Also a weighted 5 day momentum is now peaking
out. Price and breadth oscillators can be deceiving as price continues to
go its merry way following its own trend to the stars. Wonder what
astrology has to say about the NASDAQ? When the standard tools don't work
there is a tendancy to get mystical and look away from the tape for ethereal
explanations. That has to be the sign of mania and we know how those end.
BobR
----- Original Message -----
From: <HBernst963@xxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Cc: <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, January 23, 2000 3:43 AM
Subject: [RT] Re: Longer Term Top? for S&P500
> There is evidence that a number of indicators no longer seem to work and
> migration from the NYSE to the NASDAQ could be the reason. The 5 day and
10
> day TRIN used to be good indications of overbought and oversold. The major
> low of 10-18-99 had the 5 day TRIN giving an overbought not an oversold
> reading as would be expected. It stayed at the overbought level all the
way
> up through December. No help on that indicator.
> We all know how bad the breadth and new highs/new lows were in 1999 on the
> NYSE but over on the NASDAQ new highs have been greater than the new lows
in
> the last few months. Maybe the migration has occurred and we need to
somehow
> combine figures from the two exchanges to get a better idea of overbought
and
> oversold.
>
> Howard Bernstein
>
>
>
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