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Strategies & Market Trends : Technical Analysis With Charts

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To: Brumar89 who wrote (2700)7/31/2006 2:26:01 PM
From: MACD X  Read Replies (1) of 6865
 
BRUMAR89 NAA50 IS NAZDAQ STOCKS OVER 50 DAY MOVING AVERAGE

The naa50 is a market timimg gauge that tracks the amount of stocks in the Nazdaq that are over there 50dma.

When markets are over bought this index will show high readings relative to the past.

When it is showing low readings the market is oversold.

There is a company named Vector Vest that tracks every stock in the stock market. I am sure some of you have seen it. They give buy and sell recommendations on every stock every day.

Sounds complicated but not really, all they are doing is giving a buy recommendation to any stock that is over the 50dma, a hold recommendation to stocks that are between the 50dma and the 200dma. All sell signals to any stock that is under the 200dma.

So what the Naa50 is doing is telling you how many stocks are in a bullish trend and comparing it to times of the past.

this is a good indicator to watch along with new highs and new lows.

They give a good gauge of where we are in terms of oversold and overbought.
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