blaze,
I try not to pay attention to the various treatises on what capitulation could or could not be. Folks talk about "stealth capitulation", "gradual capitulation", "selective capitulation" -- that's just HOPE talking.
When it comes, it's clear. One of the hallmarks is that there is a period of time, could just be a couple of hours, when everything (well, 98% of everything) is sold; gold miners, blue chips, glamour trash, the works.
Also, you're looking for a very high volume day, something in the 5 billion range for NYSE and NASDAQ combined.
Having said that, a bottom is also marked by divergences in wider timeframes, where various stocks do not make new lows and we see the underlying breadth of the market not make a more bearish low at the eventual price low. This is something that happens in the wide daily or weekly timeframes, whereas capitulation happens in hours or maybe a couple of days. |
