Earlier today we commented on our proprietary scores of relative strength point & figure stock charts and highlighted areas of relative strength and weakness in the market place based on these scores. In this post we’d like to make another interesting observation related to one...
Many investors, including ourselves, look at the CBOE VIX to measure market volatility. Over the past few days the VIX has made multi-year lows and is back at levels last seen in 2006-2007. Another way that we look at volatility is by tracking the standard...
While the MSCI World Index is just a smidge off it’s all-time high, the average stock is about 8% below it’s 252-day high. Recent history suggests that we will need a slight consolidation, either through price or time, in order to make way for further...
Breadth has improved somewhat in the market recently. During this latest burst higher over the past three weeks, the MSCI World has experienced an expansion in new highs across a variety of time frames....
A random walk theorist would suggest that over a long enough period of time, the number of days the market ended higher should equal the number of days the market ended lower. Said differently, the percent of ”up days” should equal the percent of ”down...
We commented yesterday here that we are seeing fewer and fewer stocks making new highs even as the headline MSCI World Index makes all-time highs. In that vein, today we highlight that 128 stocks or 8% of all stocks are off by at least 30% from their...
The MSCI World Index made a new all-time high last week on yet again a fewer number of stocks making a new 200-day high. In fact, only 7% of stocks in the MSCI World Index made a new 200-day high last Friday....
The 200-day moving average of the Advance/Decline Ratio are showing some significant divergences among regions in the MSCI World. On the positive side the AD ratio has significantly improved for MSCI Asia-Pacific since September 2013. The AD ratio has converged back towards the price series....
Over the past 252 trading days, only 46% of stocks in the MSCI World Index are actually outperforming the index itself. As the chart below highlights, this is well below the average level for this bull run since 2009. Looking at this statistic from a...
As we are sitting here watching another potential 1% down day in the S&P 500 (we commented about this earlier in the week here and here), we thought we would take a quick look at cumulative net new highs and lows....
Measures of market breadth can give us important clues as to what is happening underneath the surface of major stock indices so we can make better decisions....
A simple way of looking at longer-term momentum is to look at the percent of stocks trading above their 200-day moving average. When this figure reaches 20% we say that the index or sector is at oversold levels. This tends to mark more advantageous buying...
One of the ways we measure breadth is by tracking the one-year cumulative advance/decline ratio. This series keeps a daily running tally of issues that are advancing relative to those that are declining. Since late 2013, we have seen a positive increase in this breadth...
We’ve highlighted on numerous occasions over the last few months the softening technical backdrop in the MSCI World Index....
With stocks around the world selling off pretty much in tandem over the last week we thought we’d review what our indicators of market breadth are telling us at the moment. In a nutshell, even though most markets suffered 2-3% losses last week, global stocks...
