Okay Tom,
I'll take up the challenge:
1) as of yesterday there is a divergence between the new high/ new low ratio (ie new highs/(new highs+new lows)) going on since about 9/03. Specifically, the dow has been edging down, but the ratio has been edging up.
I have eyeballed the graphs back to 1970, and the only divergence I can detect is the other way (e, the Dow goes higher and the ratio goes lower).
New highs/new lows does not appear to be an indicator followed by much of anyone here on Silicon Investor, yet I have not seen a serious decine which is not preceeded by weakness in the new high/ new low measures.
As far as I can estimate from the data provided by DBC.com, new highs on both the NYSE and the NAZ are helthy again today.
2) The above not withstanding, The Dow has already broken through 7600, and various other indicies are about to break through similar support, with the exception of RUT-X. Nevertheless, how can a serious decline occur with new highs checking in over 200 every day?
3) On another subject which I have been hesitant to ask about previously, and now take the opportunity of your generous invitation for discussion <G>, can one design a sytem to trade a specific futures index based on the underlying cash index, or is that just a plain foolish idea?
Bob |
