Zeev's Turnips - No Politics Message Board

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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: sam_o who wrote (68124)	5/16/2002 12:12:18 PM
From: Zeev Hed	Read Replies (4) of 99280

Real rallies involve the then prevalent market leaders, thus if indices are still going up but new highs are not expanding, that typically means that leadership is being lost and a decline might ensue. The same applies in declines, if indices continue and drop but new lows do not expand, that specific decline phase might be coming to an end. The irony is that a peak in new highs or a peak in new lows often signal a turn in the market, unfortunately, you never know it "was" a peak until you are well past it. Thus you want to stay in with a trend of increasing new highs, get out when some other additional indicators show you that the numbers of new highs is reaching a peak, and similarly you want to stay out as long as the trend of new lows expand, but jump back in when additional indicators point to a peak in new lows. A useful chart to follow the Naz new highs/new lows behavior is: stockcharts.com[s766372]&disp=P Note the double peak in March and April, note that the last two days run caused the index to move above its 20 DMA, very similar to last July action which preceded the big late August/September debacle. Zeev

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