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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: mishedlo who wrote (52598)6/19/2006 4:13:23 PM
From: mishedlo  Read Replies (1) | Respond to of 116555
 
After I posted that I started thinking about it and something did not make any sense. I went back and looked at it.
It was from 2 years ago. I also received an email from someone pointing out the same thing.

Mish



To: mishedlo who wrote (52598)6/19/2006 9:32:56 PM
From: shades  Respond to of 116555
 
advance decline ratio

Philster has talked about this before - I have watched it a few months and don't see how it is predicting anything negatively - what am I missing?



http://www.marketscreen.com/help/AtoZ/default.asp?hideHF=&Num=22

The DJIA was making new highs during the 12 months leading up to the 1987 crash. During this same period, the A/D Line was failing to reach new highs. This type of divergence, where the generals lead and the troops refuse to follow, usually results in the generals retreating in defeat as happened in 1987.


Philster has commented on this being a great predictor of the 87 crash - I wouldn't have guessed the 87 market was going to crash based on this divergence. His says when this divergence comes again - expect another crash - but the PROPHET will never give an exact time I bet.