Don't want to drift far away from ACD here, but I do believe some market breadth indicators are valuable in conjunction with using numberlines to size up the market. Using Nasdaq composite new highs - new lows unquestionably has merit in my opinion: http://stockcharts.com/h-sc/ui?s=$NAHL&p=D&st=2003-02-22&en=(today)&id=p33641102778 There are some interesting free articles about it available via google search.
My “Sweet Spot” midcap index (IJH) will confirm tomorrow with anything except a -4. Consumer Staples (XLP) confirmed last Wednesday and Consumer Discretionary (XLY) confirmed on Thursday. I’m keeping more and more consumer stock number lines. I like’um. I had a number of resets on Friday and today.
IJH has been ripping up since mid Jan despite a small pull back at the start of February. Although XLP is confirming for me also there is a lot less momentum in that number-line compared to IJH. See the below chart for Broad market and sector ETF´s.
is it weird that my NL for AMZN firmed up so fast before everything else? Does anyone else that track AMZN? any thoughts?
Cheniere is ripping. Up over 50% from the lows two weeks ago. They are exporting their first cargo today.
I beleive ACD works very well alongside other methods/systems. Like Fisher says in the book though, if 49 out of 50 indicators say go long, but ACD says no, then don't go long.