many new lows during the rally

Discussion in 'Stocks' started by blackjack007, Feb 1, 2008.

  1. even with yesterday's strong rally, many stocks are making new lows. that's usually an ominous sign.
     
  2. I do not expect many stocks to trade near their respective 52 week high price values following a few weeks of decreasing general market index values. Not right away. It takes time for prices to rally near their respective 52 week high values.

    I keep wondering what selling and buying really mean since at all times stock is owned by someone and for every seller there is also a buyer.
     
  3. you are arguing a different point. this is not about how many stocks are making new highs. this is about why there are so many lows when the market is rallying.

    i remember the same thing happening during the nasdaq implosion of 2000. throughout the mini rallies, you would continue to see more and more stocks reach lows. not that i'm predicting a repeat of 2000.

    besides, the broader market is only down 10% from the oct high... A modest decline like that shouldn't be enough to cause so many new lows, especially after spx has rallied 100 pts in a week.
     
  4. very good point. I noticed the same. Seen the Russell2000 lately? I follow mostly tsx stocks and even though it rallied 200+ yesterday most stocks i was looking at were flat or down. Seems the institutions were out there buying the stuff weighted in the index.