Huge number of stocks with rising positive numbers and confirms A zero or +2 will confirm DIA tomorrow A -3 or better will confirm HYG tomorrow Silver (SLV) confirmed today XLB will confirm tomorrow XLE will confirm tomorrow A -3 or better will confirm XLI tomorrow
I think this is going to be a great spreaders market. The market is firming up but there is plenty of stuff going down. Market neutral books can make a killing in the next few months.
In addition using the standard numberline scoring system, I keep track of a separate numberline that adds/removes 1 point when a move of +/- 3% or more occurs in an underlying stock, and use tomorrow's open as the closing price (to account for overnight gaps). So for example, if a stock makes a good C up and ends up +6% for the day (as of tomorrow morning's open), that days score would be 5 instead of the standard 4. I do this because if a stock has a +20 numberline and then posts terrible earnings and starts tanking, I want the numberline to quickly start reflecting this bearishness, which this custom line does. I won't enter positions solely off this, but use it as a confirmation tool. If my standard numberline is giving a stock a +12 score, but the custom line is only saying +3, I wont be as bullish. Just passing at along.
I would be careful with this. The number line is not really a measure of how strong or weak a product is but rather a measure of trend. For example, I have two stocks, A and B. A has a +30 number line and B has a +10 number line. The +30 is not necessarily a stronger stock. It merely has a smoother trend. In many cases the stock with a +30 number line might be up 5% since confirm while the +10 stock might be up 30% since confirm. In fact one of the interesting and robust features of the number line is how it can increase in value when stocks are going down! I don't know of any other quantitative measure that replicates that.
Mav the more and more I use number lines, the more I think that there biggest strong point has to be when used for relative analysis and spotting marginal change. I have not found a better method than. This is something I used to be useless at pre ACD, but is now one of the most important parts of my trading.
Right...benchmarking is a critical part of the analysis. ACD allows one to normalize data and get rid of the noise in the data. Something that is just not possible with standard charting.