GZ, I appreciate that you were kind enough to share how you look at the a/d line. I track it religiously, as well as the high/lows (do the same moving average on it), and the AMG mutual fund flows.
Clearly, this week will continue the deterioration in the a/d line. Because we will be dropping the last couple of days of December and first few days of January, a positive 3,300 will be coming off the count. Hard to believe the market will have that kind of improvement.
That said, my count shows the a/d line bottomed on 12/14. That should have been (in retrospect) the entry point. The count peaked on 1/11, and that should have been the exit point. In other words, it seems to me that it is not only important whether the a/d line is positive or negative, but whether it has reached a perceived top or bottom.
I still feel like I'm in the information collection stage, but, again, thanks for opening my eyes to the issues.
Berney |
