Markets Are Soaring But Wait, AD line Negative

crossed 13k and never looked back, now 14k is 11 points away.....

 

Not valid; less than 0.10 per share of sm basket program.
time to rethink if big blocks fire and many issues are up or down $1.00 plus.

 

what is an sm basket program?

 

The DJIA is just for entertainment purposes only. It represents 30 stocks out of a market of 3249 stocks on the NYSE, 1240 on the AMEX, 3061 on the NASDAQ and 1728 on the Bulletin Board.

Depending on what index you look at, it may seem like its party time or bend over and hold your socks time. The $UTY looks like an index where I have to bend over for example while the $DJIA looks like its party time.

The $NDX in 2001 was looking like I should jump out of the window of a tall building. You hear many horror stories of guys losing their shirts, but if you just focused on that index then you would be at a huge loss. The fact of the matter is that other indexes were just beginning their climb such as the $INSR and the Russell 2000 value.

So my advice is to look at the big picture and multiple indexes.

 

When I see all three RSI readings in the 90s, I know some sideways or some corrective action is near.

This did not work in late April and all of May 07, but 90% of the time its worth paying attention to.

When all three and under 30, its time to buy, as long as price is above 50,100,200 day moving averages.

 

I don't think that you need an indicator to draw that general conclusion. And as for the timing, I wonder how many times the standard reading of the indicator is wrong before it is right.

 

The nyse tick and money flows into the sp500 have been weak. That is important.

 

who honestly cares about an average of 30 stocks? sure joe and jane sixpack, but besides that who really cares? you think pros have buy stops at 14k?

 

Despite the recent new highs, the Russell 2000 has had a hard time with any kind of follow throughs and failing to follow the SPX and NDX.

I won't say this is the top but I'll cautiously short at the resistance levels established today on the YM/ES if it approaches it again.

 

This is earnings kickoff week, you ought to be careful. There will be endless buying probably. I'm short RSH and one or two others but if results are half decent everything will get pushed higher.

Good luck.