Positive 52-Week New Highs vs. New Lows streak enters month 34!
Another useful tool for analyzing an index which only includes your kind of equities is a comparison between the number of issues establishing new 52-week high ground and the number sinking to new 52-week lows. The longer the numbers are overwhelmingly positive, the more likely it is that a correction is approaching.
Superficial analysis is very straight forward --- there should be more new highs in an upward trending market and more new lows during a correction. Typically, New Highs vs. New Lows is the last market statistic to weaken...
- Over the past 63 months (April '09 thru June '14), months with more new highs (59) have exceeded months with more new lows (4) by a huge margin (see chart) --- including the past thirty-three in a row; 44 of the past 46.
- How many of you think this is going to last forever... please, I want to hear from you.
- Does your 401K Plan take your equity profits automatically?
New High vs. New Low Numbers Still @ Stock Market "Bubble" Levels
Has your equity manager taken profits during this tremendous upsurge in the IGVSI market?
Click here for more information
The New High and New Low issue stats also identify weaker and/or stronger sectors within the Investment Grade Value Stock selection universe --- very important in helping investors determine where the bargains are and where the profit taking opportunities should be.
New High vs. New Low numbers are around histerical, "Bubble" levels --- markets this strong don't continue forever --- have you taken your profits?
Remember to be quick on your profit-taking feet, using the two 7's beats one 10 "Brainwashing Book" strategy. The correction you've anticipated may without warning --- there has never, not ever, been a permanent upward only stock (or bond) market.
What's this all about? Check your copy of "Brainwashing" or contact the only authorized Market Cycle Investment Management practitioner on the planet --- yes, there is only one, and this guy can put you in touch...
Please join my Linked In network Please join my private mailing list