PnF (and horse) guru Kevin Depew on Minyanville charts the bullish% of all the indices each day.What's that? It's the % of stocks in a given index below their 50 day MA. When the number gets too extreme, then the theory goes, the move is a bit late.
BUT (big but), you look for both extremes AND turns.
Long story short, every index is very low, and in "O"'s in PnF terms.
The graphs here are for the Ugliest Duck of all, the Nazz Composite. The bottom graph only goes back 2 years, so you can see we are actually at levels not seen as long as they let me look back here (2 years in this case).
The upper version is the PnF, and you can see we really have not gotten this ugly since 2001.
So bottom line is we're pretty overdone, but you REALLY have to be careful pre-anticipating the turns.
5 comments:
Wow, a Point&Figure Chart, takes me back to the NYIF. Is it just me or does the full court press in CFC by CNBC seem a bit much? Anyone else notice the correlation between the recent slamming and the lack of ads lately by CFC on CNBC?? Maybe it's revenge by CNBC for CFC yanking the ads...... Oswald acted alone!!!!
i think i took that class also, lol. Seriously.
Mozillo hoarding cash for his defense maybe.
You hear that CFC "advanced talks" report, followed promptlty by EB saying, "The talks could very well fall apart" CNBC was caught short, glad I grabbed my nuts and doubled down today.
It's interesting that the big beta favorites aren't joining in the party. GOOG BIDU AAPL AMZN are red in a sea of green today.
puck: they literally can never get the prompters to show the right price it seems.
Brendan: Looks like just an overhang of trapped longs in those pups
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