Breadth indicators are also referred to as market internals. As the “vital signs” for an index or sector, breadth indicators reflect aggregate performance for the individual components. As such, breadth indicators can provide leading signals by strengthening before a bottom or weakening ahead of a top. After all, the whole is only as good as the sum of the parts
Most stocks and ETFs are deeply oversold and ripe for a bounce, but a bounce remains elusive. And timing such a bounce is a game for short-term traders who can watch the market intraday. This is the kind of volatility that chews up traders and spits them out.
The master ETF list here at TrendInvestorPro has 200 ETFs from every corner of the market: stocks, bonds, commodities, currencies, foreign indexes and a few odd balls. They, and I do mean the infamous “they”, say that there is always a bull market somewhere.
In general, I am not a fan of price targets or projections because they are very subjective. Instead, I prefer to identify the trend in a systematic and objective manner, and then trade or invest accordingly until proven otherwise. The index and sector breadth models turned bearish at the end of February and
There were a slew of 52-week highs a month ago (Valentine’s day) and there is now a bigger slew of 52-week lows. The market went from a raging bull with a few pockets of weakness a month ago to a raging bear with only two major ETF avoiding the new low list: QQQ and XLK.
The market is oversold, but we do not need an indicator to figure that one out. There is one HUGE problem with oversold conditions right now. Yep, you guessed it. We are in a bear market. Oversold conditions alert us to possible setups in bull market environments, but not in bear market environments.
Stocks are in a freefall with small-caps leading the way lower. The Russell 2000 ETF is down some 25% over the last three weeks, while the S&P 500 SPDR is down over 18%. This is set to worsen
Defensive ETFs led the rebound the first three days of the week and held up the best on Thursday and Friday. Utilities, bonds, gold, Healthcare, REITs and Consumer Staples finished the week with strong gains.
This is just an update to the mean-reversion setup currently in play for the S&P 500 (and SPY). I will also post the regular ETF report later today, probably around 10AM ET. The mean-reversion setups were explained in detail last Friday, Saturday and Sunday
After falling some 12% in six days and RSI moving below 20, the trading world is looking for a mean-reversion bounce. The short video below will look at two mean-reversion systems trading SPY at oversold extremes.
This article will explain the methodology behind the ranking table that uses the Weighted Average Stochastic Score (Score). ETFs trading near their highs on multiple timeframes are typically in uptrends and have high scores, while ETFs trading near their lows
The S&P 500 and Nasdaq 100 remain in good shape, the Russell 2000 remains in bad shape and the S&P MidCap 400 is caught in the middle. I am not going to read too much into relative and absolute weakness in small-caps because the Russell 2000 is always overreacting. We need to focus on the …
The State of the Stock Market – A Stock Picker’s Market Read More »
The ETF bag is mixed with SPY and the key sectors holding up, small-caps lagging and the SOXX forming a bullish pattern.