Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (37737)	7/22/2002 3:33:58 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69822

[madtrader] Fri Jul 19, 11:17am PDT T2108 For those who has access to TC2000, there is a very interest indicator that has done well in terms of measuring major market lows. That is the percentage of stocks trading above their 40 day moving average. In recent years (last dozen or so years), when T2108 (TC2000's symbol for this measure) gets to above 70%, as it did back in March, market peaks out. As it gets closer to the single digits, market hits a major bottom. Last September, it got to 6%. The only other times this measure has gotten lower was back in the bear market of 1990, and the crash of 1987. In 1987, it got to be less than 1%. In 1990, it hit 4%. We are certainly moving closer to those levels, but still a bit off. The reading is currently between 11-12%. So, if you are patient, another week or so of this kind of selling, it will get there. none. [madtrader] Fri Jul 19, 10:53am PDT $VIX.X $VXN.X There is a little divergence in the chart pattern of VIX and VXN here. On daily momentum, VXN is starting to show signs of break down. It hasn't really rolled over yet. One lesson I have learned from the "Options Ayatollah" Larry McMillan is that these signals are most valid when they roll over. Just because they are hitting what is perceived "extreme" levels can be a trap. But it is a small clue here of things to come. And I still see tech related names with better relative strength here. Or lesser weakness, if you think strength is no where to be found.