|Market Breadth Pattern||Neutral||Now we started to see some distribution with more stocks from consolidation being distributed than accumulated. The up gap in morning session was used to sell. However, we need further evidence of strength or weakness to establish a clearer market direction.
The market is still in a Weak market state.
|Primary Breadth Trend||Bullish||The primary market breadth has now turned into bullish territory.|
|Monetary Conditions||Bullish||Monetary base started to decline. However, short-term interest is still much lower than longer term interest rate. Thus, Interest Rate Pump factor continues to rise. Monetary policy is still extra easy.|
Note: Any change from previous day summary is highlighted in blue.
Below is the forward-looking market timing track record since the blog started. Next day opening price of SPY is used to calculate gain/loss so that we can take advantage of it in a realistic setting. SPY is used for reference only. You can use other instrument of your liking, e.g. TNA, options, futures. For historical back-testing results, please read the last section of Market Breadth Pattern guide.
|Date||Action||SPY Next Day Open||Gain/Loss||In Percent|
|SPY Point||Compounded||Trade End|
|Market Timing||since Apr 2011||19.80||15.75%||8.20%|
|Buy & Hold SPY||since Apr 2011||-12.20||-9.12%|
Market Breadth Pattern
Primary Market Breadth
Please refer to the following page: http://stockcharts.com/h-sc/ui?s=$NAHL&p=D&b=4&g=0&id=p22957433685
Note: The following charts are updated once every month. The chart was last updated on Nov 30, 2011.
- BLUE: 1 year leader and 1 month leader,
- LIGHT BLUE: 1 year leader,
- LIGHT GREEN: 1 month leader,
- RED: 1 year laggard and 1 month laggard,
- MAGENTA: 1 year laggard,
- ORANGE: 1 month laggard.