Wednesday,
November 9th. - Charts, and Commentary
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Today, I
want to show you a helpful index for you to watch, especially if you are a short
term
trader or investor.
Below is the NYA (New York Stock Exchange
Index) of Advancing Volume minus its Declining
Volume. The result is
the "net" positive or negative movement. The market's short term
ups
and downs are effected by this action, because this index reflects a lot
of Institutional investing.
On the chart below, note how the Net NYA
Volume continued to make higher end-of-day highs.
I drew lines from top to
top, so you can see that it rounded off, declined, and then dropped.
Its drop reflected in what happened in the market yesterday and that was
your tip off.
Movements where the tops are declining and the bottoms are
rising often means that you
will be exposed to a whipsawing condition over
the short term.
Also note that I drew red lines off the
bottoms it has made. Note that the bottoms
are rising bottoms.
So, as we are dropping in Net Volume to a negative short term level,
each
bottom is less damaging than the previous.
This is saying that strength
is actually improving over the short term, as each down move
is occurring
with lessening distribution. This is only a short term analysis and
cannot be use for position trades![]()
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