James, no, I do not use these stocks as indicators that the correction is over (but I have noticed that they bounce back first), I use other tools to try and gauge the bottom. The last one was easy, the FED rang a bell, we also had an unusually long string of extremely negative ticks (more then -1300), and the turn was signaled on the first day that the tick registered higher than 1000. and few other indicators (one of which is the lack of any new high on SI's own index and a decline in the daily SI bull bear ratio under 1 for few days). Watch this signal, it now indicates a major decline in the offing, today I saw it above 7. It so happened that the market also reached pretty close to what was then my next resistance (that resistance was at 7400, but the market turned some 50 to 70 points above it). Right now, I do not think we are going to get a correction that will cull the high list enough to get down under 20 or so, but if we do, let's keep a record of the "survivors", that might be an interesting exercise.
Zeev |
