U.S. Markets: Measures Of Trend Go Positive
Blair Jensen | Mar 19, 2015 03:39AM ET
Our measures of trend finally made it to positive territory yesterday. If they can hold into the close on Friday we’ll be changing our core portfolio allocations by reducing cash or short positions and adding longs. The change won’t have an effect on the volatility hedged portfolio since it’s still 100% long (since 10/24/14). I’ll do an update Friday before the close with the new allocations.
One thing to keep an eye on if the market continues to push higher is the NYSE Advance / Decline line (NYAD). It continues to show healthy readings even though other measures of breadth like the percent of stocks below their 200 day moving average are starting to print tepid readings (65% area). This tells us that even though many stocks are below their 200 day moving average they’re being bought (advancing issues). As I have stated over and over again, I don’t think the long term trend will change until we see a serious decline in all of our measures of breadth. At the moment we want to see NYAD make a higher high with any continued rally.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.