Friday, February 8, 2013

A-D Line leadership


Short-term weekly cycles can be skewed by excessive emotion – in this case greed – as retail and institutional investors continue to push money into the market seeking to capture the proverbial “last eighth.”  I would also point out that the NYSE Advance-Decline (A/D) line made a token new high today (Feb. 6) even as the NYSE Composite Index did not.  Leadership in the A/D line is usually followed by a move higher in the indices.


[Excerpted from the Feb. 6 issue of the Momentum Strategies Report, www.clifdroke.com]

No comments: